Tesla Achieves Key Breakthroughs in 4680 Battery Cell Development by Mid-2024

FYI: Tesla reported a significant increase in 4680 battery cell production, achieving a 50% rise in output in Q2 2024 compared to Q1 2024.

Tesla’s 4680 Battery Advances: Major Milestones Achieved in Q2 2024

The second quarter of 2024 marked significant strides in Tesla’s 4680 battery cell program, revealing substantial progress in both production and cost efficiency. According to Tesla’s Q2 2024 Update Letter, the company managed a 50% boost in 4680 cell production compared to the previous quarter, reaching a new high in manufacturing efficiency.

Milestones in Production and Cost Efficiency

Tesla disclosed that their Q2 2024 production of 4680 cells saw a 50% increase over Q1 2024. This enhanced production efficiency comes alongside continued improvements in cost reduction, a core objective for the company.

Moreover, Tesla successfully constructed its first validation Cybertruck equipped with the company’s proprietary dry cathode 4680 cells in the second quarter. This development is not just a technical triumph but also a significant step toward reducing overall production costs. Increasing cost efficiency across Tesla’s product lineup remains a top priority for the electric vehicle titan.

Future Prospects for 4680 Cells

Reports indicate that Tesla aims to mass produce and integrate 4680 cells with dry electrodes in consumer vehicles by the end of the year. Chinese publication LatePost cited insiders who stated that the advanced 4680 cells would feature both negative and positive electrodes manufactured using Tesla’s in-house dry electrode process. Currently, Tesla’s 4680 cells include a negative electrode made with the dry electrode process and a positive electrode sourced from an external supplier, created using traditional wet cathode processes.

Successfully scaling up the complete iteration of 4680 cells could result in considerable cost savings for Tesla’s vehicles. During Tesla’s Q2 2024 earnings call, Lars Moravy, Vice President of Vehicle Engineering, highlighted the key achievements of the 4680 program for the quarter.

Key Highlights from the Earnings Call

“4680 production ramped strongly in Q2, delivering 51% more sales than Q1, while significantly reducing COGS. We are currently producing more than 1,400 Cybertrucks with 4680 cells each week. We will continue to increase production as we aim to meet our cost parity target by the end of the year," Moravy noted.

He added, "We’ve built our first validation Cybertruck using the dry cathode process on mass production equipment, a significant technical milestone that we are very proud of. We’re on track for a production launch with dry cathode in Q4, enabling our cell costs to be substantially lower than available alternatives, which was the original goal of the 4680 program.”

Conclusion

Tesla’s advancements with their 4680 battery cell program underscore their commitment to innovation and cost efficiency. With promising future developments and production milestones, Tesla continues to lead the charge in the electric vehicle industry.

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Written by: William Kouch, Editor, Automotive.fyi