Five years after Tesla acquired Maxwell Technologies for its dry battery electrode production method patents, the first Cybertruck with dry cathode cells has rolled off the production line at Giga Texas.

The dry battery electrode (DBE) coating technology is one of the main reasons Tesla teased a 50% reduction in battery manufacturing costs when it announced the 4680 cell during Battery Day in 2020.

The DBE method skips the expensive furnace baking process, so it uses much less energy and factory space. It also eschews the toxic solvents used with the current wet coating methodology.

The actual production realities, however, turned out way more complex than the Battery Day presentation. The Maxwell Technologies method was incredibly hard to master at scale, so Tesla simply started making 4680 batteries without it. Those realized at least some cost savings, but mainly because of the larger size that allowed a battery with less packaging and welding points that doubled as a chassis structure.

The first generation was briefly used in making structural battery packs for the Model Y. It, however,had lower energy density and exhibited a slower charging curve, soTesla quickly reverted to the good ol' Panasonic and LG cells. It then started making a second 4680 battery generation dubbed the Cybercell as they were destined for the Cybertruck.

Those are a tad more advanced, offering 10% higher energy density, but the Cybertruck's charging curve still leaves a lot to be desired despite its 800V powertrain architecture.

Tesla's suppliers Panasonic and LG are both working to ramp up their own 4680 battery production, and their costs per unit apparently beat Tesla. So much so that Elon Musk hinted at an internal year-end deadline for catching up before it scraps the whole 4680 battery project altogether and just sources cells from suppliers.

This is why the announcement of the first Cybertruck with dry-cathode 4680 cells is a rather significant development. If Tesla has found a way to scale the DBE method, the 4680 batteries will be much cheaper to produce and that could allow it to lower the Cybertruck pricing going forward.

Granted, Tesla's former battery chief showed Sandy Munro around a demonstration Cybertruck unit he claimed to use DBE cells more than six months ago during the launch marketing blitz.

He probably meant a dry anode, though, which is much easier to pull off. The dry-cathode Cybertruck that Tesla's Senior Manufacturing Engineer of 4680 Cell Development Cole Otto now shows could be a production line unit with two "dry" electrodes for the first time.

The only question left now is if Tesla can produce those at scale, and fast, in order to remain on track for the promised 50% reduction in 4680 battery costs.

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Nice shot of the dry cathode CT ????

— Bonne Eggleston (@BonneEggleston) July 26, 2024