Tesla cancels multibillion dollar cathode material order from L&F

According to insiders, the high-nickel cathode materials from L&F were intended for Tesla’s 4680 cylindrical cell, which the US electric vehicle manufacturer unveiled at its Battery Day over five years ago. The 4680 battery cell measures 46 millimetres in diameter and 80 millimetres in height—hence its designation. Tesla designed the 4680 cell to be cost-effective to produce while offering an extended range, and it was intended for use in an affordable Tesla model priced at just $25,000 USD, which has yet to materialise.

Currently, however, the 4680 cells are only used in series production for the Cybertruck—and even this flagship project is struggling. CEO Elon Musk initially planned for an annual production of up to 250,000 units, yet the model fell far short of this target even in 2024, its first full year of sales. The situation worsened in 2025: in the first nine months of the year, Tesla sold only 16,907 units, a 38 per cent decline compared to the same period last year, when 27,974 vehicles were sold. Figures for the fourth quarter are not yet available. Most recently, Siddhant Awasthi, head of Tesla’s Cybertruck programme, left the company.

Tesla once had grand plans for the 4680 cells: the US company intended to use them as the centrepiece of a new generation of batteries across all its models, aiming for greater range, lower costs per kWh, and simplified production. Reality, however, has proven different. Production has been more challenging than anticipated, with technical hurdles in the ‘dry electrode’ process and cell design. As a result, Tesla currently uses the cells almost exclusively in the Cybertruck, while other models such as the Model Y or Model 3 continue to rely on 2170 or LFP cells.

The de facto cancellation of the L&F order suggests that Tesla is not planning a significant expansion of 4680 production in the near future and will continue to use the cells selectively. Meanwhile, L&F has stated that the issue does not lie with its materials, emphasising that it continues to supply its battery materials to Korean cell manufacturers at the usual volume.

electrek.co, heise.de (alemán)