Tesla, Inc., just lost one of the most respected innovators in the
electric vehicle business, which brings up competitive implications for the
future of what will be powering EVs.
After Tesla co-founder JB
Straubel revealed his plan to leave the company, a few big questions came
up… What will the next phase of the electric vehicle battery war look like?
Will Straubel and another Tesla co-founder, Martin Eberhard, resolve the
conundrum of manufacturing EV batteries that can go farther than 300 miles
per charge and that come down in price?
At the beginning of Wednesday’s quarterly report, CEO Elon Musk made the
stunning announcement about Chief Technology Officer Straubel leaving the
company, and then gave details on delivery of Tesla's electric vehicles
during the past quarter. The news was of great interest to shareholders and
Tesla followers as the company continues to go through upheaval and backers
yearn to see stability and growth from the EV maker.
Retiring at age 43, Straubel was still in his twenties when he became
convinced that new and innovative lithium-ion batteries could become the
power source for mass produced EVs. The battery technology was being adopted
in laptops and and cell phones, and Straubel intuitively sensed that li-ion batteries would be the answer to the big question
sidelining mass market EV sales — and bringing the technology to other
transportation modes. How can you make batteries with good range and the
potential to come down in cost that make the vehicles more affordable and
viable?
Straubel met Musk in 2003, when they had lunch in Los Angeles near the
headquarters of Musk’s other pet project — his rocket company, Space
Exploration Technologies Corp. (SpaceX). At that time, Straubel was trying to convince
Musk to build an electric airplane. Their passion for EVs led Musk to
introducing Straubel to Tesla’s original founders, Martin Eberhard and Marc
Tarpenning.
They came together as a team, but Musk would be taking on a different
approach than Straubel, Eberhard, and Tarpenning, who had a more
conservative, engineering perspective about building the electric car.
Related:
Battery Metals Face Looming Supply Crunch
Eberhard and Tarpenning left Tesla in 2008, as disputes came up over the
future of the company — and as Musk exerted more control. Musk’s managerial
style has been credited for pushing the company to the stock market and mass
producing its Model 3 — but also with driving away key executives and causing
turmoil with its factory workers.
Straubel brought a much needed calm and balance to Musk’s approach to
running the company. He was known for providing insight and clarity to the
technical points that could come up with shareholders and Tesla engineers.
His role as a problem-solving engineer came through as the company had to
overcome several obstacles.
He’s become known as a global innovator in EV batteries, energy storage,
and propulsion. Straubel played a leading role in developing the company’s
product line — guiding propulsion and software teams through the development
of the Model S and Model X; fast-charging capabilities before the
Supercharger network was developed; and stationary energy products long
before Tesla acquired SolarCity. His leadership in developing the Powerwall
and Powerpack energy storage products have brought in a steady stream of
cashflow for the company.
Martin Eberhard is another
true believer in innovative battery technology setting the pace for the
race against internal combustion engines. He’s launching yet another electric
vehicle battery startup soon after selling his previous EV battery startup to
new EV maker SF Motors to help them make their own electric cars.
Eberhard has stayed very active in the EV space, having briefly led
Volkswagen’s EV development group in the US. He then went over to Atieva,
which became Lucid Motors, a builder of high-performance EVs gaining interest
among fans of the technology.
After leaving Lucid in 2015, he launched his own startup, InEVit, that
built battery packs for EVs. SF Motors, a China-backed EV startup, acquired
InEVit in late 2017. Related:
Battery Metals Face Looming Supply Crunch
Musk may
have his own secret plan in place to develop next-gen EV batteries
and reduce its dependency on battery partner, Panasonic. Musk and other Tesla
executives have been looking for ways to develop an ample supply of battery
packs to ramp up production and sales of the Model 3 and future high-volume
models. It’s also cut into sales of the company’s profitable energy storage
systems.
Musk told shareholders at the company’s annual meeting in June that Tesla
has been “battery-constrained” in the past. That could also include having
his company make its own battery cells to make the company what Musk refers
to as being “vertically integrated.” Musk would like for Tesla to own all of
its systems and software, and not rely on partnerships.
For Straubel, it’s now his time to move on. He will likely have to do
something creative and innovative with his mind and fascination with
batteries of the future. He may end up being like Microsoft co-founder Paul
Allen — askance from his old friend Bill Gates and later criticizing him in a
book; but Allen has remained quite active in the world of high-tech products
without taking on Microsoft in direct competition.
Straubel says he'll have to chill out for now, but will be coming back
soon. He’ll always be an innovator.
“I love inventing and creating and building things and am at peace knowing
that about myself and wanting to reorient my life,” Straubel said. “I'm
decompressing for a bit and having a little break, but I will have more to
say in a few weeks.”
By Jon LeSage for Oilprice.com
