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Tesla’s Nickel Problem: The quest for sustainable sourcing

Credit: (Photo: Andres GE) | GoContractor

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Tesla CEO Elon Musk promised a “giant contract” to a nickel supplier during the Q2 2020 Earnings Call. The problem is that the company will have trouble finding an efficient and environmentally-friendly nickel mine, and it could prove to be Tesla’s biggest challenge yet.

Nickel is a crucial metal in electric vehicle batteries because it can increase energy density and provide cars with more range. Musk stated during the Earnings Call that nickel-based cells are essential for the development of larger vehicles, like the Tesla Semi, for example. “Where every unit of mass that you add in battery pack, you have to subtract in cargo,” he said. “So it’s very important to have a mass efficient and long-range pack.”

Nickel-based cells would give Tesla an advantage in electric vehicle range, a category where the company already leads by a sizeable margin. However, with new vehicles on the way, cells have to be adjusted to work with specific workloads. The Semi is an excellent example of this.

Nickel could replace cobalt in Tesla’s current battery cells. Cobalt, a controversial element on its own, is responsible for stabilizing the cell and has been effective in increasing the safety of the high-energy batteries that Tesla has used. However, the mining process of cobalt is questionable, and mines which can obtain it likely are using child labor, which is highly illegal. It also is not environmentally-friendly to mine.

A nickel mine. (Credit: GoContractor)

Tesla has taken extra steps to ensure that its cobalt suppliers are treating their workers humanely through a series of due diligence checks. Third-party companies complete random visits to these mines a few times a year to ensure that the cobalt Tesla is using in its batteries is humanely obtained.

The problem is: Nickel mining isn’t much different. Although it would be advantageous, safer, and provide more range for Tesla’s vehicles, it is tough to find nickel that is environmentally-friendly and responsibly mines. The largest nickel sources are in Indonesia, where millions of tonnes of waste are dumped into the sea, polluting coral reefs and damaging the homes of turtles.

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Analysts believe that Indonesian miners will provide nearly all of the growth of nickel supplies over the next decade. With electric cars becoming more popular, batteries will be a large part of the surge in demand for the metal. Still, it is also used in everyday products, like stainless steel appliances, Financial Times says.

Other countries, like Canada and Australia, have nickel mines, but Indonesia is highly concentrated with it.

Steven Brown, a consultant and former employee at nickel mining company Vale, says that it could be challenging for customers who are environmentally-conscious to want products that contain the metal after hearing how some entities dispose of it.

“It could undermine the entire proposition of trying to sell a consumer a product that is environmentally friendly, if you have this back story,” he said.

Even though other countries have nickel available, the increased demand for EVs will require large automakers, like Tesla, to eventually have to source some of the metal from Indonesia. “At some point, it will happen where they can’t avoid Indonesian nickel,” Brown added.

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Luckily, Tesla requires its sources to go through due diligence processes, and it is unlikely the company will steer away from them to obtain nickel. Of course, Tesla will benefit from having more nickel, but it has to be sourced responsibly for the company even to consider using it.

On top of that, nickel is the second most expensive metal in EV batteries. It only trails cobalt, which Tesla has worked intensively to get away from because of its environmental and humanitarian impact.

“We use very little cobalt in our system already, and that’s — that may to zero along, so it’s basically about nickel,” Musk said.

There is a delicate balance between positive environmental impact after EVs hit the road and the harmful impact sourcing some of the metals have. However, the automakers do not assume any of the responsibility for the mining companies’ process of getting rid of waste. But it is their responsibility to choose a company that decides to handle the ridding of environmentally-harming materials responsibly.

Tesla has made it a point to choose companies that share their mission for sustainability because the automaker realizes that building an electric car starts with sourcing the materials. If the materials are not responsibly obtained, then the EV isn’t as Earth-friendly as it could be.

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Pius Ginting, an environmental activist, summed it up perfectly: “The net result is we have clean air in our cities — but then we destroy a rich biodiversity area.”

Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Man credits Grok AI with saving his life after ER missed near-ruptured appendix

The AI flagged some of the man’s symptoms and urged him to return to the ER immediately and demand a CT scan.

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Credit: Grok Imagine

A 49-year-old man has stated that xAI’s Grok ended up saving his life when the large language model identified a near-ruptured appendix that his first ER visit dismissed as acid reflux. 

After being sent home from the ER, the man asked Grok to analyze his symptoms. The AI flagged some of the man’s symptoms and urged him to return immediately and demand a CT scan. The scan confirmed that something far worse than acid reflux was indeed going on.

Grok spotted what a doctor missed

In a post on Reddit, u/Tykjen noted that for 24 hours straight, he had a constant “razor-blade-level” abdominal pain that forced him into a fetal position. He had no fever or visible signs. He went to the ER, where a doctor pressed his soft belly, prescribed acid blockers, and sent him home. 

The acid blockers didn’t work, and the man’s pain remained intense. He then decided to open a year-long chat he had with Grok and listed every detail that he was experiencing. The AI responded quickly. “Grok immediately flagged perforated ulcer or atypical appendicitis, told me the exact red-flag pattern I was describing, and basically said “go back right now and ask for a CT,” the man wrote in his post. 

He copied Grok’s reasoning, returned to the ER, and insisted on the scan. The CT scan ultimately showed an inflamed appendix on the verge of rupture. Six hours later, the appendix was out. The man said the pain has completely vanished, and he woke up laughing under anesthesia. He was discharged the next day.

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How a late-night conversation with Grok got me to demand the CT scan that saved my life from a ruptured appendix (December 2025)
byu/Tykjen ingrok

AI doctors could very well be welcomed

In the replies to his Reddit post, u/Tykjen further explained that he specifically avoided telling doctors that Grok, an AI, suggested he get a CT scan. “I did not tell them on the second visit that Grok recommended the CT scan. I had to lie. I told them my sister who’s a nurse told me to ask for the scan,” the man wrote. 

One commenter noted that the use of AI in medicine will likely be welcomed, stating that “If AI could take doctors’ jobs one day, I will be happy. Doctors just don’t care anymore. It’s all a paycheck.” The Redditor replied with, “Sadly yes. That is what it felt like after the first visit. And the following night could have been my last.”

Elon Musk has been very optimistic about the potential of robots like Tesla Optimus in the medical field. Provided that they are able to achieve human-level articulation in their hands, and Tesla is able to bring down their cost through mass manufacturing, the era of AI-powered medical care could very well be closer than expected. 

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Tesla expands Model 3 lineup in Europe with most affordable variant yet

The Model 3 Standard still delivers more than 300 miles of range, potentially making it an attractive option for budget-conscious buyers.

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Credit: Tesla

Tesla has introduced a lower-priced Model 3 variant in Europe, expanding the lineup just two months after the vehicle’s U.S. debut. The Model 3 Standard still delivers more than 300 miles (480 km) of range, potentially making it an attractive option for budget-conscious buyers.

Tesla’s pricing strategy

The Model 3 Standard arrives as Tesla contends with declining registrations in several countries across Europe, where sales have not fully offset shifting consumer preferences. Many buyers have turned to options such as Volkswagen’s ID.3 and BYD’s Atto 3, both of which have benefited from aggressive pricing.

By removing select premium finishes and features, Tesla positioned the new Model 3 Standard as an “ultra-low cost of ownership” option of its all-electric sedan. Pricing comes in at €37,970 in Germany, NOK 330,056 in Norway, and SEK 449,990 in Sweden, depending on market. This places the Model 3 Standard well below the “premium” Model 3 trim, which starts at €45,970 in Germany. 

Deliveries for the Standard model are expected to begin in the first quarter of 2026, giving Tesla an entry-level foothold in a segment that’s increasingly defined by sub-€40,000 offerings.

Tesla’s affordable vehicle push

The low-cost Model 3 follows October’s launch of a similarly positioned Model Y variant, signaling a broader shift in Tesla’s product strategy. While CEO Elon Musk has moved the company toward AI-driven initiatives such as robotaxis and humanoid robots, lower-priced vehicles remain necessary to support the company’s revenue in the near term.

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Reports have indicated that Tesla previously abandoned plans for an all-new $25,000 EV, with the company opting to create cheaper versions of existing platforms instead. Analysts have flagged possible cannibalization of higher-margin models, but the move aims to counter an influx of aggressively priced entrants from China and Europe, many of which sell below $30,000. With the new Model 3 Standard, Tesla is reinforcing its volume strategy in Europe’s increasingly competitive EV landscape.

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Tesla FSD (Supervised) stuns Germany’s biggest car magazine

FSD Supervised recognized construction zones, braked early for pedestrians, and yielded politely on narrow streets.

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Credit: Grok Imagine

Tesla’s upcoming FSD Supervised system, set for a European debut pending regulatory approval, is showing notably refined behavior in real-world testing, including construction zones, pedestrian detection, and lane changes, as per a recent demonstration ride in Berlin. 

While the system still required driver oversight, its smooth braking, steering, and decision-making illustrated how far Tesla’s driver-assistance technology has advanced ahead of a potential 2026 rollout.

FSD’s maturity in dense city driving

During the Berlin test ride with Auto Bild, Germany’s largest automotive publication, a Tesla Model 3 running FSD handled complex traffic with minimal intervention, autonomously managing braking, acceleration, steering, and overtaking up to 140 km/h. It recognized construction zones, braked early for pedestrians, and yielded politely on narrow streets. 

Only one manual override was required when the system misread a converted one-way route, an example, Tesla stated, of the continuous learning baked into its vision-based architecture.

Robin Hornig of Auto Bild summed up his experience with FSD Supervised with a glowing review of the system. As per the reporter, FSD Supervised already exceeds humans with its all-around vision. “Tesla FSD Supervised sees more than I do. It doesn’t get distracted and never gets tired. I like to think I’m a good driver, but I can’t match this system’s all-around vision. It’s at its best when both work together: my experience and the Tesla’s constant attention,” the journalist wrote. 

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https://twitter.com/Paddy_film/status/1996245521770364947?s=20

Tesla FSD in Europe

FSD Supervised is still a driver-assistance system rather than autonomous driving. Still, Auto Bild noted that Tesla’s 360-degree camera suite, constant monitoring, and high computing power mark a sizable leap from earlier iterations. Already active in the U.S., China, and several other regions, the system is currently navigating Europe’s approval pipeline. Tesla has applied for an exemption in the Netherlands, aiming to launch the feature through a free software update as early as February 2026.

What Tesla demonstrated in Berlin mirrors capabilities already common in China and the U.S., where rival automakers have rolled out hands-free or city-navigation systems. Europe, however, remains behind due to a stricter certification environment, though Tesla is currently hard at work pushing for FSD Supervised’s approval in several countries in the region.

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