Tesla’s current battery cells are made by Panasonic, LG Chem, and CATL, which are all large suppliers in the auto industry. While these companies are reliable suppliers, they are not able to meet all of Tesla’s needs. The company’s design requirements are highly specific and the pace of innovation is rapid.
Tesla wants to create a battery cell that is more efficient, durable, and cost-effective than what is currently available on the market. This will allow the company to reduce the cost of its vehicles and make them more accessible to the average consumer.
This is why Tesla's Sunday announcement that it has produced 868,000 of its latest 4680 battery cells in the last 7 days is a major news in the electric vehicle battery industry. As I reported in my previous article, "This is a major milestone for the company, as it is the first time that Tesla has produced such a large quantity of the new battery cells in such a short period of time. It's basically enough for roughly 1 out of every 3 cars produced at Giga Texas. Not bad."
In addition, by having control over its own 4680 battery cells, Tesla can more quickly and easily make modifications to its vehicles. This will give the company a competitive advantage over other automakers who are still relying on third-party suppliers to produce their batteries.
Tesla is also looking to reduce its reliance on other companies for its battery cells by manufacturing them in-house. This will help the company lower its costs and increase its profits. It will also give the company more control over its production process, allowing it to quickly adapt to changing market conditions.
Overall, Tesla’s decision to make its own battery cells is a smart move that will help the company reduce costs, increase profits, and have more control over its production process. This could be a huge step forward in helping Tesla reach its goal of making electric vehicles more affordable and accessible.
Armen Hareyan is the founder and the Editor in Chief of Torque News. He founded TorqueNews.com in 2010, which since then has been publishing expert news and analysis about the automotive industry. He can be reached at Torque News Twitter, Facebok, Linkedin and Youtube.