Tesla would have a problem with its 4680 battery cells, the very ones that must equip the Model Y and the very futuristic Cybertruck. According to Reuters, which relies on anonymous sources, the manufacturer would have appealed to Asian partners to find a solution. Tesla would thus have entered into partnerships with two Chinese companies, Ningbo Ronbay New Energy and Suzhou Dongshan Precision Manufacturing, in order to reduce the costs of the materials used.
This 4680 battery cell was unveiled by Elon Musk at the Battery Day event in September 2020. Developed by Tesla, this cylindrical version is larger than the previous ones, with a diameter of 46mm and a height of 80mm giving it her name. The 4680 were created in particular with the aim of reducing the production costs of batteries.
As 4680 cell manufacturing increases in the United States thanks to the two incumbent suppliers Panasonic and LG Energy Solution (subsidiary of LG Chem), Tesla and its CEO Elon Musk hope to benefit from 4680 cells “more efficient and less expensive”while avoiding the risk of shortages.
Indeed, in addition to the Cybertruck which must be equipped with these cells, Elon Musk is counting on this battery to produce 20 million Tesla vehicles by 2030. In 2020, he said that the company would have an internal capacity of 4680 sufficient to supply 1.3 million Model Ys.
Change of tone during the traditional day of investors (Investor Day), at the beginning of March, during which the mogul declared that a shortage of batteries would mean the stoppage of car production plants.
During Investor Day, Tesla’s CEO allegedly acknowledged that the ramp-up of production of the first 4680 cells is not optimal and could delay the arrival of the Cybertruck. One of the reasons would be to find on the side of the two official suppliers. Panasonic, which has set up a pilot production line of 4680 in its plant in Wakayama (Japan), will not be able to begin mass production until “later in the fiscal year ending March 2024”. The Japanese are considering “Most often is “possibly” to transfer the production of 4680 to its new factory in Kansas (United States), according to statements by Shoichiro Watanabe, chief technology officer of Panasonic Energy, last month. This factory is expected to produce mainly 2170 cells. As for the second supplier, LG Energy Solution, it plans to open a new production line of 4680 in its factory in Ochang (South Korea) during the second half of 2023.
Energy density below expectations
A problem that never comes alone, the first generation 4680 cells leaving the Fremont factory would not have the required energy density. The problem would stem from the difficulty of applying a “dry coating” on the cathode, where significant progress is expected – the same process on the anode does not pose any difficulty. Consequently, the current production of 4680 can only equip 50,000 vehicles/year.
To increase the energy density of the next generations of 4680 cells, Tesla has signed (another) agreement with L&F Co, a South Korean company that will supply cathodes with a high nickel content (90%).
A plan B for the Cybertruck
In order to meet the Cybertruck’s marketing date, scheduled for this year, Tesla has drawn up a plan B. Three options: use 2170 cells (the same as on other Tesla vehicles), opt for first-generation 4680s, or even less expensive LFP (lithium-iron-phosphate) type battery cells. A prioriTesla would rather wait until the 4680 cells are ready.
Despite these immediate problems, analysts remain “optimistic about Tesla’s ability to solve them”. The day after Investor Day, analyst firm Morgan Stanley said: “While execution risk remains and many details are unknown, Tesla’s impact on the global battery industry may still be underestimated.”