Tesla’s Battery Development Plans

(Reuters) – Tesla (NASDAQ:TSLA) is set to design four new versions of its proprietary battery to power the Cybertruck, an upcoming robotaxi, and other electric vehicles, according to a report from the Information.

Currently, the company largely relies on external sources for its electric vehicle (EV) batteries, primarily from Panasonic (OTC:PCRFY) Energy and LG Energy. However, Tesla has been working to increase production of its 4680 battery cells in the United States to reduce costs and improve profit margins.

The 4680 battery development has encountered significant challenges, with test production reportedly losing 70% to 80% of the cathodes, a vital battery component, in contrast to conventional manufacturers, who face losses of less than 2% due to defects.

Tesla has been attempting to scale up production of a dry-coated version of the 4680 cells but has struggled with manufacturing speed. According to the report, Tesla aims to introduce the dry cathodes in Cybertruck batteries by mid-next year, with plans to produce between 2,000 and 3,000 Cybertrucks weekly using this technology.

By 2026, the automaker intends to unveil four versions of the 4680 batteries incorporating the dry cathode, including one, code-named NC05, intended for the robotaxi.

The company is anticipated to reveal its long-awaited robotaxi product next week, as it shifts its focus toward AI-driven autonomous technology amidst a slowdown in demand for battery-powered vehicles.