Leaf's Batteries 'More Primitive' Than Those in Tesla's First Prototype, Musk Says

Leaf's Batteries 'More Primitive' Than Those in Tesla's First Prototype, Musk Says

UPDATE: Nissan Answers Tesla CEO's Allegations.

On the same day that we reported that electric-vehicle maker Tesla Motors posted a larger year-over-year second-quarter loss, company CEO Elon Musk told shareholders that the upcoming Nissan Leaf EV will contain problem-prone lithium-ion batteries.

Tesla has been making a $109,000 all-electric Roadster, with a 240-mile range between plug-ins, for more than two years. Nissan's Leaf, with a 100-mile range, will go on sale in the U.S. later this year and sell for $32,780 before tax incentives.

In the wake of remarks by Nissan reps that the Japanese automaker claimed to have lowered production costs to $375 per kilowatt hour for the lithium batteries in its 2011 Leaf, Musk told shareholders that the Leaf's batteries are "more primitive" than Tesla's first prototype.

At the heart of the matter were the differences between the cooling systems used by the two automakers. The Leaf uses air cooling for its batteries, while the Roadster uses a superior liquid heating and cooling thermal management solution.

By opting for the cheaper air cooling, Musk said on Aug. 4, Nissan's battery temperatures will be "all over the place."  He said that they will undergo "huge degradation" at colder temperatures and "shut off" at warmer ones.

Nissan spokesman Tim Gallagher, in an interview with Green Car Advisor, chose a diplomatic response to Musk's strong allegations.

"Different folks have different views of market needs based on their own interpretation," he said. "But at the same time, the sophisticated simplicity of our battery operation and capability is far broader than some may portray and is based on many years and many hours of development by many experienced and talented people at Nissan."

Gallagher said that "in the end, the products will speak for themselves and we wish the best to all participants - whatever their path may be - in helping to bring zero-emissions vehicles to market."

It should be noted that the company supports the Leaf's battery pack with an 8-year, 100,000-mile warranty and has been working on lithium-ion battery technology for a long time. Tesla guarantees its Roadster battery pack for three years or 36,000 miles, whichever comes first.

Tesla is currently focusing on development of the Model S, a $56,500 all-electric sedan that will go on sale in the U.S. in 2012. Musk claims its batteries will be superior to those in the Roadster, containing 50 percent more density per module and abandoning the expensive all-cobalt electrode in favor of a nickel cobalt aluminum cathode.

The company has not revealed the per-kilowatt-hour cost it's seeking for the Model S battery.  ]In 2009 the industry average, according to a Deutsche Bank report, was $650/kWh. Current orders being placed for the 2011/2012 timeframe are averaging $450/kWh.

Scott Doggett:  is an AutoObserver.com Associate Editor.