Tesla recently stated it is now manufacturing both the anode and cathode of its 4680 battery cells through a dry-electrode process. The company announced the update in its Q4 and FY 2025 report, signaling that after several years of development, it has refined a critical element of its battery technology. This move comes at a time of greater scrutiny on supply chain reliability in the EV industry, as firms look for cost-effective and efficient methods to advance cell production capacities. Tesla’s efforts highlight its intention to control more aspects of its battery manufacturing while responding proactively to global trade dynamics.
Earlier reporting on the 4680 battery cell development often pointed to the dry-electrode process as a major technical challenge for Tesla, generating speculation about its scalability and reliability. Past communications suggested that Tesla had only partially implemented the method, with the cathode dry process posing especially persistent issues. The full integration of the dry-electrode approach sets this update apart from prior milestones, since older reports frequently noted delays and a reliance on legacy wet processes for at least one electrode type. Recent details show Tesla’s renewed focus on domestic production, whereas initial news emphasized technological ambition over supply chain considerations.
What Does the Dry-Electrode Process Mean for Tesla?
With the announcement that both anodes and cathodes for the 4680 cells are manufactured using the dry process, Tesla aims to simplify manufacturing while shrinking its factory footprint and cutting costs. The dry-electrode technique may also enhance energy density and operational efficiency. Bonne Eggleston, Tesla’s Vice President of 4680 Batteries, confirmed,
Both electrodes use our dry process.
The progress addresses previous doubts about Tesla’s ability to fully integrate this method into consistent production, rather than relying on more established wet-coating processes for either electrode.
How Does This Impact Vehicle Production for the Model Y?
Tesla’s Q4 and FY 2025 Update Letter also indicated that battery packs featuring the in-house 4680 cells are now being produced for the Model Y. As Tesla stated,
We have begun to produce battery packs for certain Model Ys with our 4680 cells, unlocking an additional vector of supply to help navigate increasingly complex supply chain challenges caused by trade barriers and tariff risks.
This development coincides with Tesla’s plan to reduce Model S and Model X output. The Model Y and Model 3 are set to play an even larger role in the company’s lineup, so securing a stable, domestic source of advanced battery packs gives Tesla more control over its U.S. manufacturing strategy.
Could Tesla’s Approach Disrupt Existing Battery Supply Chains?
Tesla’s advances may shift the balance in the battery market as it lessens reliance on international suppliers and conventional processes. Producing the 4680 battery cells in-house and using streamlined manufacturing methods could influence broader industry practices, especially in an era of frequent trade disputes and evolving regulatory frameworks. The scalability and consistency of this approach will be closely watched as Tesla continues efforts to meet growing demand for electric vehicles amid an increasingly complex supply landscape.
Cost and supply efficiency are top priorities in battery manufacturing, and the full deployment of the dry-electrode process for Tesla’s 4680 cells could provide practical benefits. Unlike earlier communications, which placed more attention on engineering milestones, the current focus seems to address risks related to geopolitical tension, tariffs, and logistical bottlenecks. Readers should note that while the technique could lower production costs and energy usage, its commercial scalability and impact on vehicle performance remain areas for monitoring. For those interested in electric vehicle trends, understanding advances in battery manufacturing processes—such as Tesla’s dry electrode innovation—will be important in evaluating future EV pricing, availability, and supply resilience.
