Tesla’s exclusive battery cell supplier, Panasonic, has announced plans to develop cobalt-free batteries.

Its pre-emptive strike is due to increasing prices and expected shortages in the material. At the moment,  Panasonic is working to rework contracts with clients to protect themselves from rising prices in the future. There’s no word yet on what these provisions may contain.

“We have already cut down cobalt usage substantially,” said Kenji Tamura, head of automotive battery business at Panasonic, in a meeting with analysts.

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This marks the latest move by a supplier or automaker to reduce cobalt concentrations in its batteries. Despite the move, analysts such as Benchmark Mineral Intelligence, a price data analysis firm specializing in lithium-ion batteries, estimate that the demand for cobalt will triple by 2026, with most automakers relying on battery cells that incorporate a nickel-manganese-cobalt cathode combination as opposed to Tesla’s nickel-cobalt-aluminum formula.

In early May, Tesla also announced its intention to reduce the concentration of cobalt in its batteries.

“We have achieved this by significantly reducing cobalt content per battery pack while increasing nickel content and still maintaining superior thermal stability,” said Tesla in its letter to shareholders.