Tesla partners with Asian companies to improve 4680 production and bring down costs

Tesla has a new battery, known as the 4680, which promises several improvements over the company’s previous batteries. However, Tesla has had troubles ramping production so the company is turning to Chinese and Korean material suppliers to bring the cost down and improve the energy storing capacity, according to a report by Reuters.

According to people with inside knowledge, the battery production and performance issues have delayed the launch of the Cybertruck. However, Tesla has now enlisted the help of China’s Ningbo Ronbay New Energy and Suzhou Dongshan Precision Manufacturing to help reduce material costs as it tries to crank up the production of the 4680 battery in the US.

Tesla has also reportedly signed a contract with Korea’s L&F Co to supply high-nickel cathodes, enhancing the energy density of the new battery cells. The EV maker has already signed deals with LG Energy Solution and Panasonic to augment its battery production to secure its future EV manufacturing. The two companies are said to be on tap to supply battery cells for the Cybertruck.

Tesla plans to produce the new battery in Texas, California, Nevada, and Berlin.

Musk hopes to boost Tesla’s output to 20 million units annually by 2030. However, his company needs to get past the issues with the battery first.

The 4680 battery is named for its external dimensions (46mm in diameter and 80mm in length).

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