Tesla purchases cathode rolls from China to expand 4680 battery production capacity
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Tesla purchases cathode rolls from China to expand 4680 battery production capacity

Posted Date: 2024-01-21

Starting in the second half of 2023, Tesla will begin purchasing cathode rolls from China and transport them to the Texas factory in the United States for the production of 4680 batteries. Cathode coils account for about 35% of battery cell costs, and this procurement method may continue until the third quarter of this year.

After evaluating the cylindrical battery production lines of multiple Chinese power battery companies, Tesla selected two suppliers. The move is aimed at expanding 4680 battery production capacity to meet Tesla's growing demand.

According to media estimates, at the current production rate of the Texas factory, 4680 batteries are only enough to equip about 24,000 Cybertrucks, which is roughly equivalent to one-tenth of Tesla's current truck production. Tesla CEO Musk revealed during an earnings call last October that Cybertruck pre-orders have exceeded 1 million. This means that once production capacity is increased, it will have a significant impact on Tesla's revenue.

Some analysts predict that by 2025, Cybertruck may account for less than 5% of Tesla's revenue, making profits almost negligible. Despite this, Tesla is actively expanding its 4680 battery production capacity to meet market demand.

Tesla is taking action to expand its battery production capacity by sourcing cathode rolls from China and shipping them to its Texas factory to produce 4680 batteries. As demand grows and reservations increase, Tesla will continue to look for ways to increase production capacity to maintain its leadership in the electric vehicle market.

Review Editor: Huang Fei


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