Michael Guillfoy, Tesla’s Director of Cell Manufacturing, posted on LinkedIn that the 4680 battery cell now costs less per kilowatt-hour than any other Tesla battery.
The Texas Cell Manufacturing team hit this target by late 2024. It’s a big step toward making electric vehicles cheaper and keeping Tesla ahead.
What’s the 4680 Cell?
Tesla showed off the 4680 cell in 2020 at Battery Day. It’s a cylindrical lithium-ion battery, 46mm wide and 80mm tall, bigger than the older 2170 cells.
June 5, 2024
Research from Battery Design says it holds about 26.5Ah, way more than the 2170’s 5Ah. It uses NCM 811 cathode chemistry, with 81.6% nickel, and a tabless setup to cut heat and speed up production. Tesla 4680 Cell Specs notes it simplifies battery packs by skipping modules, which saves money.
By the end of 2024, the 4680 became Tesla’s cheapest battery per kWh. Batteries are a huge part of EV costs, so this could mean lower car prices or better profit estimates, a 50% drop in cost per kWh compared to older cells. Tesla’s also scaled up fast, hitting 100 million cells by September 2024, up from 50 million in June.
Dry Electrode Process
Guillfoy hinted at 2025 plans, like fully using the dry battery electrode (DBE) method. Dry Electrode Process calls it a “powder to film” approach, no liquid solvents needed. It cuts energy use, skips toxic chemicals, and drops costs by 19–22%, per ACS Applied Energy. That’s 1.8–2.6% off the total battery pack price.
ORNL Dry Process says it makes tough, high-energy batteries, which could push EV sales. Tesla’s move matches industry shifts toward greener, cheaper production.
Why It Matters for Tesla and EVs
This cost win gives Tesla an edge. It might lower prices for the Model 3, Model Y, or Cybertruck, or fund more work on self-driving tech and energy storage. Guillfoy tied it to Tesla’s goal of sustainable energy. It could also nudge rivals like BMW, set to use 46mm cells in 2025 Neue Klasse EVs per BMW Battery Plans, to step up.
Some Pushback
Not everyone bought into the 4680 hype. CATL Chairman Robin Zeng said in April 2024, “is going to fail and never be successful,” citing chemistry issues. He said it in a chat with Elon Musk. But Tesla’s latest wins, cost cuts, and 100 million cells show they’ve tackled those problems. Guillfoy’s post proves the turnaround by early 2025.
Production Milestones
Here’s how Tesla’s 4680 output grew:
- January 2023: 1 million cells (Giga Texas start)
- June 2023: 10 million cells (~11,500 EVs worth)
- June 2024: 50 million cells (Tesla Milestone)
- September 2024: 100 million cells (doubled in three months)
The 4680 cell hitting lowest cost per kWh signs that Tesla is on track to lead in cheap, green EV batteries. Next year’s DBE push could widen that lead and shake up the EV market.
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