During Tesla’s 2024 annual shareholder meeting, Elon Musk made notable remarks regarding the company’s battery production.
Musk expressed confidence that Tesla’s 4680 battery cell could become the most competitive cell in terms of manufacturing efficiency, a factor that would likely contribute to its cost-competitiveness as well.
He acknowledged the challenges of cell manufacturing, stating it requires significant expertise and effort.
Achieving Independence and Resilience
Musk also emphasized the importance of Tesla having some independence in cell manufacturing. This autonomy could provide resilience in case of geopolitical disruptions affecting battery supply chains, particularly with respect to China.
The Inflation Reduction Act of 2022, which aims to reduce US reliance on Chinese batteries and materials, highlights the significance of domestic battery production.
Progress in Battery Production and Material Refining
Tesla is making steady progress in battery production, and Musk mentioned the company’s cathode refinery located behind the main factory. Additionally, Tesla is establishing a lithium refinery in South Texas. These efforts underscore the company’s commitment to securing the necessary components for battery production.
Key Takeaways
Tesla’s engagement in cathode and lithium refining demonstrates its commitment to vertical integration and reducing reliance on external suppliers. Musk’s optimistic outlook on the 4680 battery cell, coupled with Tesla’s progress in battery production and material refining, suggests the company is making significant strides in the field of battery technology.