Tesla has released an encouraging update on the development of its 4680 battery cells, which it was reportedly close to giving up on.
According to a recent report, Elon Musk reportedly gave an end-of-the-year deadline for Tesla’s team to deliver on the 4680 battery cell, which it first unveiled in 2020 and claimed would drastically reduce battery costs while improving performance.
The report mentioned issues with the dry coating process on the cathode.
With the release of its Q2 2024 earnings, Tesla shared an update on the 4680 cell – seen being handled by the Optimus robot above:
In Q2, we produced over 50% more 4680 cells than in Q1 and continued to see cost improvements. In July, we entered validation of vehicle testing for our first prototype Cybertruck produced with in-house dry cathode 4680 cells – a major cost reduction milestone once ramped. Cost reduction across our product lineup remains a top priority.
A more than 50% increase in volume quarter-over-quarter is impressive, but let’s keep in mind that production was already limited as Tesla is currently only producing the cells for the Cybertruck, which is still in relatively low production.
Top comment by George Pal
Munro Live did report on their dry cathode already I think. If it gets better then that’s great. It’s not cutting edge at this point, but if it becomes the most economical battery in north america, even over foreign competition, then they have achieved something noteworthy.
The bigger news is that Tesla has started producing prototypes using the dry cathode, which should deliver the biggest cost reduction if it proves successful.
It’s important to keep in mind that there are significant differences between the prototype stage and the production stage.
Tesla has been guiding that 4680 costs would be below that of battery cell suppliers by the end of the year.
If it can deliver on that goal, Tesla’s 4680 battery cell program would finally start to have a positive impact on the company and the industry.
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