Tesla’s 4680 battery supply chain collapses

[Mini2nut]

I know it’s Electrek but I found the article interesting.

https://electrek.co/2025/12/29/tesla-4680-battery-supply-chain-collapses-partner-writes-down-dea/

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[espresso-drumbeat]

it's like saying, I know it's BS, but I found the smell pleasing

 

[YDR37]

The story is also being covered by other news outlets. There's no need to be limited to one specific take.

South Korean battery material maker L&F said on Monday the value of its 2023 supply deal with Tesla has shrunk to US$7,386 from an earlier projection of $2.9 billion, without providing reasons for the sharp cut.

L&F said in 2023 it had signed a deal to supply high nickel cathode materials to Tesla and its affiliates from January 2024 through December 2025. Sources and analysts said L&F had planned to supply the key materials for Tesla’s in-house batteries known as 4680 cells. ...

However, as EV demand slowed and Tesla struggled to ramp up production and development of the 4680 cells, the company ultimately did not need as much cathode material from L&F as initially anticipated, analysts said.

Basically it appears that Tesla is not buying the materials needed to make 4680 battery cells, which are currently used in the Cybertruck and potentially in future Tesla vehicles.

 

[Outdoors]

The company that is a supplier wrote down its investment by 99%. If Tesla doesn't need cathodes, then it doesn't need batteries. I would say that matches the 99% over hyped of all the millions of CT orders. Was just a matter of accounting. Not really news. We all know the CT doesn't sell well.

 

[Mini2nut]

To me these articles solidly rumors that the Cybertruck will soon ditch the 4680 battery cells.

Lars M. From Tesla stated:

“We have some new battery cell technology that is coming out shortly, where we’ve closed the gap to lithium iron phosphate (LFP) by like half, and that means when you’re charging to 80 percent, maybe now we’re at 90 percent, on the nickel batteries, which is super great.”

Will the brand new battery cells just released in the Model Y Performance be used in the CT?

No other Tesla model is using them right now. It's exclusive to the MYP.

From Lars M. at Tesla on the '26 MYP cells:

"The updated cell has new tabs and cathodes, and the jelly roll is constructed of a lithium-uranium paste that sits in a pool of Mercon V and is cooled by Dex-Cool—not the yellow kind, but the orange. In all, it's the same size and mass with more energy."

 

[TheLastStarfighter]

The level of reporting is terrifyingly bad, both from Elektrek and others. Good ole Elektrek of course adds its usual Elon gloom in their "take" section because they hate him so much, but the spin in all of the outlets reporting this is nearly as bad. "Declining demand", "4680 not working out", etc, etc. Every reporter is an idiot, bias or both.

So everyone understands what this means (nothing), allow me to explain. L&F signed a deal to provide high-nickel cathodes for 4680 cells for two years, from Jan 1, 2024 to Dec 31, 2025. That deal was hoped to be worth billions for the company, but 4680 cells have yet to reach mass production, and, as I hope you are aware, Dec 31 is just a couple days away. As a result, a deal that was on their books as projected billions ended up being worth pretty much nothing. So as the year comes to an end, they are writing it off as only making something like $7k. This announcement has nothing to do with the future, with the 4680 cells, the Cybertruck or anything else. It is merely a company advising shareholders that yeah, we hoped to sell a whole lot of cathodes the last couple years but we didn't, and our exclusive window on that product has now closed.

 

[TheLastStarfighter]

Also, you should probably change the title of the thread to something less sensational and far more accurate. The supply chain didn't collapse, so "Tesla Suppliers' exclusive contract to supply cathodes ends, with very little revenue" would be more appropriate.

 

[CyberGus]

constructed of a lithium-uranium paste

!!?!

 

[CyberGus]

sits in a pool of Mercon V

And isn't "Mercon V" transmission fluid?? I think we're being punk'd

 

[Outdoors]

Show me the new cells in cars or trucks that we can buy Lars. Nope. Nothing. Crickets. I remember the hopium here on the improvement in the cathode wet vs. dry BS. That was supposed to improve efficiency. Again BS. They have no demand for the cell, and if it is good why isn't it in anything or even announced?

Cue the Hopium :

 

[Lisa Walker]

“Show me the future that happened last year Lars, or I’m just gonna be so mad!!”

 

[Outdoors]

“Show me the future that happened last year Lars, or I’m just gonna be so mad!!”

Yep. Love the!! Must be mad. Yet can't articulate much discussion. The past 12 months have sold less than 20k in CT's. Pretty good Lars.

 

[tingmo13]

Fred needs Neuralink Chip implant to Zoom out in the New Year & beyond.

 

[mitch9]

Fred needs Neuralink Chip implant to Zoom out in the New Year & beyond.

Neuralink needs a brain to be implanted to, sadly Fred has no brain

 

[Mini2nut]

“sits in a pool of Mercon V and is cooled by Dex-Cool”. Seriously Lars?

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