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Tesla aims to deliver a cost-effective ramp of 4680 battery cells at its facilities in 2023 to reach a high volume in 2024. The new low-cost and high-energy density cells will power not only already announced products but also those that are in development.
Tesla continues to be successful in scaling up the production of its new 4680 battery cells. The company has designed the new cell and manufacturing equipment for its production from scratch, so scaling production is the biggest challenge right now and the company is actively pursuing that. The 4680 cell production line in Fremont will soon be expanded with the addition of a new building that will greatly expand current capabilities. In other places, the increase in production is also moving forward.
According to information from Tesla SVP, Powertrain and Energy Engineering, Andrew Baglino, during the Q4 2022 Earnings Call, the battery ramp-up progress at Giga Texas is gaining momentum. He said that the company has four lines there, one of which is already producing cells, and the other three are at the stage of installation and commissioning. Baglino said the company's goal is to deliver a cost-effective ramp of 4680 battery cells at its facilities in 2023. Priorities include “dialing in and improving the quality of the high-volume supply mechanical parts and driving factory process yields up as much as possible.” Once success is achieved in these two key areas, Tesla “we'll be well set up to -- for a major 4680 year in 2024,” he said.
Tesla CFO Zachary Kirkhorn acknowledged that the 4680 battery cell production ramp at Giga Texas and Giga Berlin is currently inefficient, however noted that it is within the company's control. Among other things, Tesla is focused on reducing the cost of cell production, which includes the cost of the supply chain, expediting, logistics, etc.
© 2023, Eva Fox | Tesmanian. All rights reserved.
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About the Author
Eva Fox
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.
