Tesla unveiled Tuesday at its Battery Day event a new 4680 battery cell, a larger form factor that would increase range by 16%.
Tesla said the new cells will have a 5x increase in energy and a 6x increase in power capacity. The new cell is 46mm by 80mm, featuring a “tabless” design that enables the efficiencies.
Tesla has reduced parts, created a better electrical connection from the battery, and simplified the manufacturing process. The efficiency in the manufacturing process of the new cell is expected to reduce the price per kWh by 14%. Tesla hopes to eventually reduce that price by 50%.
Tesla is currently producing the cells at a facility near its factory in Fremont, Calif.
Musk also raved about efforts to make the battery factory more efficient, driving home the idea that battery production needs to speed up in order for EVs to have a significant impact on climate change. Musk said it will be a “highway” at “max-velocity” once at scale. Still, Tesla’s new homegrown cells are not expected to reach mass production until 2022.
Musk said it will take a year for the first facility to reach its 10 GWh production capacity.
Musk hinted that the new battery design will lead to savings necessary for Tesla to introduce a $25,000 electric vehicle.
Watch the full presentation here.