Are Tesla Batteries Adding to China's Pollution?

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March 14 (Bloomberg) -- Cory Johnson reports on electric car battery graphite pollution on Bloomberg Television's “In The Loop.” (Source: Bloomberg)

Impact from battery production.

Right, they burn less fossil fuels when you drive them, but the question is, when you make them, what does that do to the environment?

I remember talking to investors when we were visiting solar panel manufacturers, and we cannot believe the pollution.

It is really a drag when you want to believe in the efficacy of trying to help the environment by helping these it -- buying these vehicles, but it also raises questions about the long-term business model of these companies.

Could you not say that about a lot of companies that are trying to create and produce environmentally friendly products -- that the manufacturing of them, take solar panels or whatnot, it will have an environmental cost?

You could take that about a lot of companies.

Absolutely.

There are three ways to impact this story.

It is a fantastic story that just comes out this morning.

It really gets at this issue.

There are three issues.

One is the mining of materials and the unsaved, heavily polluting mines that are being shut down.

That might get better, right?

You could imagine higher standards to mining or first world standards, and maybe someday i could happen, but in the meantime, china is shutting down mines, which leads to the second issue, the rapid predicted increase in the price of graphite.

If the price of graphite goes up so much that it makes the batteries more expensive over time, in the next 10 or 20 years without a serious mine in the graphite world since the 1980's, you can imagine they would onlymine dirty when it is effective to do so.

-- mine dirty when it is effective to do so.

The plans to build a factory to build these things, relying on the raw material where the raw cost will go up 30%, part of the believe in tesla and its current share price is that cost will go down over time, not that they will stay flat, or go up by 30%. that is the concern.

This text has been automatically generated. It may not be 100% accurate.

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