Tesla Batteries: New Tech for Cheaper, Cleaner Energy

Tesla's Battery Innovation and the Springpower Acquisition

During Tesla’s Battery Day in September, Elon Musk announced intentions to halve the cost of lithium-ion batteries. A key component of these savings, he stated, would be a reimagining of the nickel metal cathode manufacturing process.

Musk described the existing process as unnecessarily complex, comparing it to repeatedly digging and refilling a ditch. He emphasized the need for simplification across the entire production chain.

A Canadian Startup's Role

The solution to this complexity appears to stem from a relatively small battery startup located in Canada – specifically, through the acquisition of its patent applications.

Just two weeks prior to Battery Day, Tesla acquired a series of patent applications from Springpower International, a company situated near Toronto, for a nominal fee of $3, as public records indicate.

One of these applications detailed a novel process remarkably similar to the one presented by Drew Baglino, Tesla’s senior vice-president of engineering, at the Fremont, California factory during Battery Day. The purchase transferred ownership of the patent to Tesla upon its granting in January, with no acknowledgement of Springpower’s prior involvement.

Addressing Cathode Manufacturing Challenges

Traditional electric vehicle battery cathode production generates substantial amounts of contaminated water. This effluent can reach up to 4,000 gallons per ton of cathode material, containing ammonia, metal particles, and various toxic chemicals.

Springpower’s innovative process addresses this issue by recirculating the chemical solution, thereby eliminating the need for costly and complex water treatment procedures.

Baglino’s presentation highlighted a method that also focuses on water reuse and zero effluent discharge. He further stated that this approach could reduce operational costs by over 75%.

Beyond Patent Acquisition

It is increasingly probable that Tesla’s involvement with Springpower extended beyond simply acquiring intellectual property. Shortly before Battery Day, Springpower International’s website was replaced with a placeholder page.

Furthermore, several researchers formerly associated with Springpower have updated their LinkedIn profiles to reflect their current employment at Tesla.

Michael Wang, CEO of Springpower International, did not respond to requests for comment. Attempts to reach the company via its switchboard were also unsuccessful.

Early History and Funding

Springpower International was established in March 2010, initially as a research and development arm of Chinese battery firm Highpower International. However, Highpower withdrew its $100,000 investment within six months, deeming the technologies insufficiently mature for commercialization.

James Sbrolla, a mentor from a Canadian government-funded program, assisted the company in securing grants and, ultimately, a $3.4 million (Canadian) sustainable technology award in 2018.

Sbrolla reported having no contact with Springpower International personnel since late 2020.

Strategic Acquisition and Future Outlook

Sbrolla expressed little surprise at the possibility of an acquisition, stating that Springpower’s technology offered significant advantages, including a reduced environmental impact. He also noted that integration with a larger organization would accelerate scaling efforts.

If the acquisition of Springpower International by Tesla is confirmed, it would represent one of approximately a dozen such acquisitions, including the 2019 purchase of another Canadian battery company, Hibar.

Tesla's Focus on Canadian Expertise

Elon Musk has consistently sought out lithium-ion battery expertise from Canada. In 2015, Tesla established a five-year exclusive partnership with Jeff Dahn, a prominent battery researcher and professor at Dalhousie University in Nova Scotia.

Dahn has been credited as an inventor on numerous recent Tesla battery patents, and his contract was renewed for another five years in January.

Internalizing Battery Production

Musk is actively pursuing the internal production of batteries to lessen Tesla’s dependence on current suppliers like Panasonic, LG Chem, and CATL. Baglino announced on Battery Day that Tesla would begin constructing its own cathode facility in North America.

Musk suggested that these advancements could eventually enable the production of a $25,000 vehicle, but cautioned that full realization of these benefits would take between one and three years.

The precise role of Springpower International in Tesla’s future plans may become clearer as these developments unfold.