Tesla has released a very detailed update on its 4680 battery cell program, which is expected to be critical for its future electric vehicles.
The 4680 battery cell format has taken the industry by storm since Tesla unveiled its own cell strategy at Battery Day in 2020.
The automaker claimed a potential to reduce battery cost by over 50% with the new design; it has been trying to bring it to volume production since, but it has run into some bottlenecks.
In a conference call following the release of its Q1 2023 financial results, Tesla gave a detailed update about its 4680 battery cell production.
Drew Baglino, Tesla’s senior VP of engineering, said about the 4680 cell:
On Battery Day, we established a cost-down roadmap through 2026 across five areas of effort. There was the cell design we discussed; anode and cathode materials, the structural pack concept, and the cell factory itself. We’ve been making progress across all these aspects since then. For the Cell Factory, for the Texas 4680 factory, we are part way through building and commissioning and installing and operating, will be 70% lower capex per gigawatt hour than typical cell factories when fully ramped in line with what we described on Battery Day. And we’re continuing to further pursue densification and investment reduction opportunities in future factory buildouts like in Nevada.
Tesla is producing 4680 cells at its pilot plant in Fremont, but it is expected to reach higher volume production at Gigafactory Texas, which is the “cell factory” Baglino is talking about here.
He continued:
On the cell design, we’re in production with not only the first generation tabless cell we unveiled on Battery Day but a second more manufacturable version in Texas today. On the cathode material side. we have a number of activities underway per the Battery Day roadmap. For lithium, our Corpus Christi Lithium Refinery breaks ground this May. Our goal is to start commissioning portions of the facility for the end of the year. The refinery uses the sulfate-free refining process with reduced process costs, no acid or caustic reagents, lower embodied energy. It actually produces a beneficial byproduct that can be re-purposed in construction materials.
The executive also gave a more specific update on its Cathode factory at Gigafactory Texas:
We discussed all of these concepts on Battery Day. Same with cathode precursor, we’ve successfully demonstrated a lower process cost, zero waste water precursor process that we described on Battery Day at both lab and pilot scale and are on the detailed design phase for incorporating this technology into the front end of our Austin cathode facility. On cathode production, we are 50% equipment and 75% utilities installed at our new cathode building in Austin with our goal to begin dry and wet commissioning this quarter and next quarter with a target to produce first material before the end of the year.
The 4680 cell also enables Tesla’s new structural battery pack design. The Model Y in production at Gigafactory Texas is the first one to feature this radically different chassis/battery pack design, but Tesla’s future vehicles, including the upcoming Cybertuck, are expected to feature this design.
Baglino gave an update on that front:
Structural pack, we saw big improvements with pack manufacturing with the 4680 cell on the structural pack concept, 50% lower capex and 66% smaller factory with the same output in gigawatt hours per year. We do believe structural as a concept is a good one. It’s simpler. We’ll continue to structurally load the cells and use the pack as the floor of the vehicle while iterating the design to closer to B-level execution of this A-level architecture in future programs. And zooming out for the 4680 team Q1 was all about cost and quality.
The executive shared some details about improvements in production output this quarter and focus on reducing costs going forward in preparation for Cybertruck volume production:
We made significant improvements in both areas. On Texas production, we increased 50% quarter-over-quarter, through yields increased 12% and peak rate increased by 20% and through yields improved by 20%. Altogether, the team accomplished a 25% reduction in COGS over the quarter and we are on track to achieve steady-state cost targets over the next 12 months. And going forward for the rest of the year, the priority one is to yield in cost for the 4680 program as we steadily ramp production ahead of Cybertruck next year.
This is the most detailed update on Tesla’s 4680 battery program and could indicate that Tesla is starting to get out of the woods.
Air taxi startup Vertical Aerospace achieved a world’s first this week, completing the first flight between two airports through public airspace for an eVTOL at the Royal International Air Tattoo in Gloucestershire, England.
The Royal International Air Tattoo (RIAT) is the world’s largest military airshow, held every July and serving as a public showcase for the latest advancements in aviation technology. It’s fitting, then, that RIAT served as setting for the Vertical VX4 prototype’s first piloted public flight.
The eVTOL aircraft flew 17 miles from the company’s Flight Test Centre at Cotswold Airport to RAF Fairford, a Royal Air Force station used by the US Air Force. The Vertical VX4 reached speeds of 115 mph, and an altitude of 1800 ft, and also marked the first landing at a public location for an aircraft of this type.
The Vertical Aerospace entry was the only battery-electric aircraft present at RIAT 2025, and the flight served as a demonstration of the company’s broader strategy to unlock new hybrid-electric applications for defense, logistics, and special/close support missions where the eVTOL’s (relatively) quiet operations could give it a tactical advantage.
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“RIAT is a global stage for the most advanced, mission-ready aerospace technology, and we’re proud to showcase how electric aviation will support the future of defense,” says Stuart Simpson, CEO of Vertical Aerospace. “Our hybrid-electric roadmap unlocks new capabilities for military operations, and Vertical’s RIAT presence reinforces our commitment to playing a meaningful role in the future of military and special mission aviation.”
Vertical’s VX4 debuted last year, with a 20% increase in the power-to-weight ratio that enables a top cruising speed of 150 mph and transports four passengers plus a pilot up to 100 miles on a single charge.
The inaugural VX4 flight was witnessed by several thousand UK aircraft enthusiasts, and showed how an eVTOL aircraft could integrate with real-world airport operations, building momentum toward more regular, certified deployment.
Electrek’s Take
Archer, BETA, EHang, Joby, XPeng – the list of eVTOL manufacturers seems to be as long as the list of new electric car brands that didn’t exist back when I first started working with EVs back in ::gulp:: the 1990s. The future of regional point-to-point air travel certainly seems to be vertical, and electric.
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Say what you will about Elon Musk, but Tesla has changed the way that millions of people buy cars and, by extension, car insurance. Now, Honda is taking a page from Tesla’s successful playbook and launching its own in-house insurance business. Enter: Honda Insurance Solutions.
Honda Insurance Solutions is being launched as a fully licensed insurance agency serving the insurance needs of Acura and Honda customers, but it’s not stopping at competitive pricing and coverage options for Honda cars and motorcycles. Honda Insurance Solutions promises to go several steps beyond Tesla’s offering with coverage for trailers, RVs, homes, and even pets.
“Honda Insurance Solutions offers customers access to coverage through a brand they know and trust,” says Petar Vucurevic, President, American Honda Insurance Solutions, LLC and Senior Vice President, American Honda Finance Corporation. “Insurance is a key touchpoint in the vehicle ownership journey, and we aim to deliver a superior experience tailored to the unique needs of each customer, while promoting safer driving and increased peace of mind on the road.”
The company says the launch of its new insurance business is just part of Honda’s broader digital vehicle sales platform strategy, with future plans to integrate insurance offerings into new products.
What Honda is doing right now is deepening relationships with its existing customers and finding ways to make money on products it hasn’t sold them – whether that’s the Harley parked in the garage next to their Prologue or the garage itself.
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Nobody ever says “this is business” before doing something nice, and the recently reborn Lion Electric company is keeping that streak alive by doing the unthinkable to cut costs: they’re going to void the warranties on hundreds of electric school buses.
In a letter issued to exiting Lion Electric customers last week, Deloitte Restructuring announced that the warranties on all Lion vehicles purchased outside of the company’s home Province of Quebec are null and void – leaving dozens of school districts in the lurch with stranded assets that won’t get fixed, and can’t be sold to generate funds for replacements.
“We are working with alternate vendors at the expense of the school district to help keep our electric buses functional and on the road,” explains Dr. Richard Decman, Superintendent of Herscher CUSD No. 2 district in Herscher, Illinois. “Currently, six of our 25 (Lion) electric buses need some type of repair.”
Student Transportation News reports that Lion buses represent fully half of Herscher’s overall fleet of 50 buses, and that the district has received nearly $10 million for the purchase of 25 electric buses and the related charging stations from various state and utility incentive programs.
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Herscher isn’t the only district having problems with Lion buses. “All four Lion buses that we own are currently parked and not being used,” Coleen Souza, interim transportation director of Winthrop Public Schools, told Clean Trucking. “Two of them are in need of repairs which would cost us money which we are not willing to invest in because the buses do not run for more than a month before needing more repairs.”
More of the same in Maine, where Yarmouth School Department bought two Lion Electric buses in 2023 with the state covering the costs. According to Superintendent Andrew Dolloff, the buses almost never worked. “We’ve had some sporadic service over the past two years, but as soon as the tech leaves, the buses produce error codes again,” explained Dolloff. ” and “Then the technician quits or is released, and we wait a few months for the next response.”
Dolloff added that Yarmouth’s electric buses did not operate during the 2024-25 school year.
Lion’s new owners are seemingly uninterested in their customers’ plight – which might be easily dismissed if those new owners, Groupe MACH, weren’t also the old owners of Lion Electric.
That’s right, kids. Quebec-based real estate company Groupe MACH, which stepped in to “save” Lion Electric earlier this summer, along with Ontario-based Mirella & Lino Saputo Foundation, bought $90 million of equity in Lion Electric back in 2023. And, while the MACH people may not have been the ones who ultimately made the call about voiding the warranties (that decision was made by the Deloitte bankruptcy team), it is absolutely Group MACH who have, to date, not announced plans to continue to honor those warranties, either.
Make of that what you will.
Deloitte Lion letter
SOURCES: School Transportation News, Clean Trucking, Deloitte.
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