Electric vehicle giant Tesla has just disclosed another promising update about its 4680 battery cells development.
It is indeed incredible news as Chief Executive Elon Musk has already expressed doubts about the project’s success, according The Information‘s recent report.
Tesla’s 4680 battery cell production soars
Tesla proudly revealed in its Q2 2024 Update Letter that 4680 battery cell production surged by 50% in Q2 2024 compared to the prior quarter.
The Musk-led company further disclosed that it managed to develop the inaugural validation Cybertruck utilizing the in-house dry cathode 4680 battery cells.
Tesla believes that these advancements can yield significant cost reduction across its electric vehicle portfolio in the future.
“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.”
Tesla
Overcoming challenges
In mid July 2024, a report emerged claiming that CEO Elon Musk has set a deadline for the 4680 battery team to deliver the complete version of the technology and overcome major hurdles such as the dry coating of the cathode by the end of 2024.
If the team failed, the Tesla boss is reportedly considering giving up on the 4680 battery cell project. Fortunately, they seemed close to delivering CEO Musk’s demand at the time as they already finalized the dry-process design, making mass production more feasible.
Now, it seems that Tesla will no longer need to abandon the project as the 4680 battery cell program achieved significant milestones in the second quarter of the year.
Tesla Vice President of Vehicle Engineering Lars Moravy proudly discussed this achievement and its implication to the Cybertruck production during the Q2 2024 Earnings Call.
“4680 production ramped strongly in Q2, delivering 51% more sales than Q1, while reducing COGS significantly. We currently produce more than 1,400 Cybertrucks of 4680 cells a week. We’ll continue to ramp upward as we drive cost down further toward the cost parity target we set for the end of the year.
We’ve built our first validation Cybertruck with dry cathode process made on mass production equipment, which is a huge technical milestone, and we’re super proud of that. We’re on track for production launch with the dry cathode in Q4. And this will enable cell costs to be significantly below available alternatives which was the original goal of the 4680 program.”
Lars Moravy, Tesla Vice President of Vehicle Engineering
4680 battery cells advantages
Tesla explained that the dry electrode technology cuts battery production costs by 50%. Therefore, it can make its next-gen EVs more affordable to buyers amid increasin interest rates and surge of low-cost Chinese EVs.
In addition, 4680 battery cells with dry electrodes claims to enable an extended driving range and faster charging capability.
If Tesla succeeds with its ongoing dry cathode-equipped prototype production, it can finally advance its efforts to achieve the biggest cost reduction. Thus, the 4680 battery cell program would finally begin to positively impact the business and the wider EV industry. Moreover, it can also finally enable the company to manufacture the batteries entirely in-house to cut its reliance on external suppliers.
