Tesla Gears Up for U.S. Mass Production of Low-Cost 4680 Battery Cells

Tesla plans to equip all its best-selling U.S. vehicles with customized 4680 battery cells manufactured domestically, aiming to produce the cheapest EV batteries in the United States, according to recent company statements.

The automaker anticipates reaching full-scale production of the 4680 battery by 2025, including four distinct battery types.

These versions are tailored for different vehicles, with one variant designed for the high-demand Cybertruck and others intended for a 40 kWh pack expected to power a future Robotaxi, as well as the widely popular Model 3 and Model Y.

Tesla’s 4680 cell production, initially plagued by delays and leadership changes earlier this year, has recently seen breakthroughs under new development head Bonne Eggleston. Eggleston set ambitious production targets, leading to a significant step forward for the company, including the debut of its first Cybertruck equipped with the advanced dry cathode cells.

Tesla’s commitment to the dry cathode manufacturing method could drive costs down by nearly 50%, according to statements made during the company’s recent Q3 earnings call. CEO Elon Musk suggested that Tesla’s cell production costs may soon be competitive enough to lower vehicle prices below $30,000, particularly with federal tax credits and incentives factored in.

Tesla, while moving aggressively toward in-house battery production, will continue sourcing batteries from suppliers Panasonic and LG as it scales up vehicle and energy storage production.

Musk noted, “We’ll continue to buy a lot of cells from our competitors… our intent is not just to make cells internally.” However, he underscored that Tesla’s 4680 battery, once fully optimized, is expected to be the most cost-competitive in the U.S.

Source: Tesla