$Tesla (TSLA.US)$ May have launched the largest battery project since its establishment 21 years ago, aiming to develop and release four new 4680 battery models simultaneously to the market.

Tech media The Information reported on Thursday, October 3rd, Eastern Time, quoting sources familiar with the matter, stating that Tesla has initiated the most extensive battery R&D project in company history, aiming to design four new proprietary batteries planned to be launched in 2026, to provide power for the electric truck Cybertruck, the upcoming self-driving taxi Robotaxi, and other electric vehicles.

Four years ago, in September 2020, Tesla introduced the 4690 battery model to create a battery that not only increases energy density but also reduces costs. CEO Musk stated that this battery allows Tesla to manufacture affordable electric cars priced at only $25,000. Tesla later mentioned that increasing 4680 battery production is key to reducing the overall cost of the company's products.

However, The Information's report on Thursday stated that the development of the 4680 battery encountered problems: Tesla experienced 70% to 80% losses in cathodes during trial production. Cathodes, like anodes, are a crucial part of the battery, acting as lithium-ion catchers. If traditional battery manufacturers produce batteries, losses due to manufacturing defects account for less than 2% of batteries and components.

Tesla is striving to produce the second generation 4680 battery using a dry electrode coating process to manufacture cathodes, known as 4680D. This process can incorporate more active battery materials, increasing energy storage by five times and power by six times, thus enhancing battery range and power, and reducing charging time. Musk stated that this process will reduce battery manufacturing costs by 15% and decrease the use of toxic chemicals. In July of this year, a significant breakthrough was achieved with the adoption of this innovative process in the 4680 battery: Tesla used its independently developed dry cathode 4680 battery for the first time in the Cybertruck.

This Thursday's report mentioned that despite the lower yield rate of the dry cathode 4680D, Tesla is still advancing the production of this battery, setting a goal to increase the yield rate to 90% by the end of this year and planning to achieve mass production in the second quarter of 2025. By next year, Tesla aims to produce 2000 to 3000 Cybertrucks with 4680D per week, more than double the current output of Cybertrucks using the 4680 battery.

The report mentions that in 2026, Tesla plans to launch four follow-up versions of the dry cathode 4680D batteries, with one internally codenamed NC05 called the 'workhorse,' which will be used for Robotaxi. Musk intends to unveil this battery at the official launch of Robotaxi next week. In addition, the batteries with the codenames NC20 will be used for SUVs, Cybertruck, and other models, NC30 and NC50 will be Tesla's first batteries to use silicon-carbon materials in anodes, NC30 will power Cybertruck and a sedan, NC50 will be used for smaller, performance-focused cars, including the next-generation Roadster.

If the news is true, based on the planned release time of the new batteries mentioned above, Robotaxi will be launched as early as 2026.

Reports indicate that Tesla hopes that more vertical integration will allow the company to achieve customization of electric vehicles, differentiating itself from competitors. Producing a series of different and cheaper new batteries can enable Tesla to supply different types of cars in the future, and developing electric vehicle batteries in-house gives Tesla more flexibility in designing cars.

From this perspective, self-producing and developing batteries is similar to Apple creating in-house chips specifically for the iPhone.

Currently, most of Tesla's electric vehicles use batteries procured externally, mainly from China's Contemporary Amperex Technology, Japan's Panasonic, and South Korea's LG Energy. Last year, Tesla introduced a 4680 model relying on traditional battery technology in certain versions of the Model Y and Cybertruck. Due to lower sales of these versions, Tesla's own battery production is also limited. Because the battery production is insufficient to meet the demand for car models, currently Tesla's self-developed batteries are only used in the Cybertruck.

Editor/Somer