Recently, there was news that Tesla is going to give up its own production of 4680, or even give up the technical route of 4680, which is a bit of a joke.
Tracing back to the source, the main information comes from LG Energy Solution (LGES) will start production of Tesla's 4680 battery cells at its Ochang plant in South Korea in August 2024. This is also the first external battery company to supply 4680 batteries to Tesla after Tesla supplied 4680 batteries to itself.
Part 1 Innovation of the 4680 battery
After the release date of Tesla's battery, Tesla's 4680 battery cell has always been an expectation for the development of power batteries. Compared with traditional cylindrical batteries, 4680 batteries have greater energy density, higher efficiency and lower cost. By increasing the size of the battery cells and optimizing the internal design, it can provide a higher range and also improve the overall performance of the vehicle. But there are not many battery companies that can mass-produce it.
● Expansion of production at LG's Ochang plant and the U.S
LGES' Wucang plant is expected to have an initial production capacity of 8 GWh per year, which is enough to supply up to 110,000 electric vehicles, not only 4,680 batteries to Tesla, but also to other automakers. To further expand production of 4680 batteries, LGES plans to conduct production at its new Arizona facility.
The plant was originally planned to produce 2,170 cells with an annual capacity of 27 GWh. But late last year, LGES announced that the Arizona plant would become a major hub for North American 4680 battery production.
Tesla still relies on external suppliers for battery production to ensure the stability and quality of battery supply. Tesla announced on June 8 this year that Texas has produced a total of 50 million 4680 batteries. However, Tesla faces challenges in improving battery production efficiency, so although it has planned to invest in 200GWh of batteries, it still relies on partners like LGES and Panasonic to meet battery demand.
● Panasonic's 4680 battery
At the Wakayama plant, the company plans to start mass production of 4,680 cells in the second quarter of fiscal 2025, adopting higher-density technology to further enhance competitiveness.
Part 2 4680电池能走多远？
Musk admits that battery production is a complex and difficult process. He mentions that "it takes quite a bit of brain damage to be good at battery manufacturing" and stressed the importance of manufacturing efficiency in battery production for cost competitiveness. Over the past few years, Tesla has been working on optimizing the production process of 4680 batteries.
However, the current cost of Tesla's homemade 4680 battery is still higher than the cost of the battery provided by the supplier. Musk said that Tesla has made significant progress in cost control, and it is expected that by the end of 2024, Tesla's 4680 battery will achieve cost parity.
The road to battery price parity is very difficult, but Tesla has seen hope, Tesla's 4680 battery cost is already lower than the supplier cost a year ago, and it expects to achieve parity with current supplier costs by the end of 2024. Musk likened the price fluctuations in the battery industry to the DRAM chip industry, with cyclical changes from oversupply to undersupply. The current battery price is low, but Tesla is expected to occupy a place in the highly competitive battery market through technological innovation and improved production efficiency.
Tesla's 4680 battery cost control progress is undoubtedly a bright spot in the electric vehicle industry, and it is still facing challenges, but Tesla's continuous innovation and strategic adjustment have laid a solid foundation for its future cost competitiveness, and Tesla's efforts and investment in battery production will bring returns beyond people's imagination.
So for now:
● Tesla will not give up the technical route of 4680, nor will it give up the production and iteration of 4680 series batteries in North America.
● Tesla will also introduce LGES and Panasonic and other different battery companies to supply 4680, the products of these companies are a strategic supplement to Tesla, and at present, LGES in South Korea, Panasonic in Japan are trying to preliminary mass production, to achieve large-scale expansion in the United States, it will take time.
● As Tesla's technical route continues to adhere to it, the next demand from BMW and Mercedes-Benz will also allow more battery companies to enter this technical route.
brief summary
LGES will start production of Tesla's 4680 battery cells in August 2024, and will be of great help to Tesla's electric vehicle route through mass production of 4680 batteries at the Ochang plant in South Korea and the future Arizona plant in North America.
Article source: Zhineng Automobile
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