![]() ![]() We first saw this with the Model 3, and work has continued with every iteration. Manufacturing is hard, but Tesla’s commitment led it beyond the product to designing products that were easier to manufacturer. Step Change Improvement In Cell ManufacturingĪs it sought greater efficiencies in automotive manufacturing, Tesla quickly pushed beyond merely designing and building products, going into the design of the machine that builds the machine. However, even with our cell suppliers going at maximum speed, we still foresee significant shortages in 2022 & beyond unless we also take action ourselves. We intend to increase, not reduce battery cell purchases from Panasonic, LG & CATL (possibly other partners too). Perhaps more importantly, Tesla leveraged its know-how in the battery cell manufacturing space along with its world-leading manufacturing equipment competency to rethink the entire process from start to finish. To solve this, Tesla’s teams have been hard at work buying and designing new technical solutions to drive further improvements in the battery cell format. Tesla’s battery forecasts showed a gap between the production limits of its battery cell suppliers and Tesla’s internal demand for its automotive and energy storage businesses. Tesla aims to grow consistently at a rate of 40–50% per year, and to do that, it is going to need more and more batteries. Tesla was content buying cells with its proprietary chemistry from its suppliers, but saw issues on the horizon. Let’s walk through each of the improvements the new form factor brings to the table. Said another way, the new Tesla 4680 cell is the equivalent of bringing a potato gun to a french fry fight. The new form factor eliminates the tabs, increases energy density, maintains similar thermal characteristics of smaller cells, improves the power-to-weight ratio, streamlines manufacturing, and lowers cost. Tesla didn’t hold back at Battery Day, announcing a new tabless 4680 cell form factor, among many other things. ![]()
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