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The data visualizations and commentary below provide a detailed insight into the complex cost structure of the Tesla 4680 cell using cell teardown data from About:Energy and the Fastmarkets Battery Cost Index.
Dataset 1: Tesla 4680 cell properties (provided by About:Energy)
The Tesla 4680 cell sample was sourced from a pre-pilot line batch of cells. Its measured capacity is 23.7 Ah and energy density is 243 Wh/kg. The cathode chemistry is NCM-811.
The current cost of the cell, with raw materials sourced from China (Fastmarkets spot pricing), and CAM and cell produced locally in the USA, is 104.7 $/kWh (based on the monthly average price for raw materials, labour and electricity for October).
As shown in dataset 2 below, the cost split between materials, CAM manufacturing, and cell manufacturing is 49:23:28. Overall, the CAM (materials + manufacturing) accounts for 52% of the cell cost, at 54.4 $/kWh. The AAM contributes 8.1% of the cost, at 8.4 $/kWh. The model simulates a 1 GWh/yr production rate, and we expect manufacturing costs to reduce significantly at higher rates.
Dataset 2: % breakdown of cell cost, USA, October 2023
Dataset 3 quantifies the impact of manufacturing location on cell cost, taking into account local labour, energy and other OPEX costs. The cell cost in China is 25% lower than the USA, at 78 $/kWh, and 5.5% lower in Germany, at 99.2 $/kWh. However, if the full IRA tax credits are applied, the USA cell cost drops to 69.7 $/kWh, 11% lower than China. Despite its price plunging over the course of the year, lithium continues to be the most expensive material component, at 14 $/kWh.
Dataset 3: Detailed cost breakdown across different regions, including the impact of the IRA 45X tax credit
In Dataset 4, the recent trends in cell cost across the simulated countries can be seen. Costs have fallen 42% (USA), 45% (Germany), 55% (China), between the peak in March/April 2022 and October 2023, driven by the fall in raw materials prices, mainly lithium. Information on where cell cost is heading in future can be found in the Fastmarkets Battery Cost Index. Please get in touch for further information on this and our long-term forecasts for lithium, nickel, cobalt, manganese and graphite, and how they affect the cell cost forecasts.
Dataset 4: Historical fluctuation in cell cost across different regions
This report can be tailored to your own specific cell and manufacturing parameters. Please get in touch for further information.