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October 08, 2020 04:40 AM

Tesla will use new battery tech at Berlin factory, Musk says

CEO flags 'significant production risk'

Reuters
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    Tesla Model Y

    Tesla plans to build the Model Y with new battery technology at its European factory near Berlin.

    Tesla CEO Elon Musk said the automaker will build the Model Y with a new structural battery design and technology at its new European factory next year and the plan could result in a "significant production risk."

    Tesla plans to build a new version of its Model Y crossover vehicle, and possibly even battery cells at the site near Berlin. Last month, Musk said that Tesla will use its Germany-based plant to demonstrate a radical overhaul of how its cars are built.

    The company plans to start the production of Model Y at the plant during the second half of 2021.

    DAILY NEWSLETTER: Sign up and get the top news of the day in Europe every business weekday.

    Tesla's new battery cell -- a larger cylindrical format called 4680 that can store more energy and is easier to make -- is key to achieving the goal of cutting battery costs in half and ramping up battery production nearly 100-fold by 2030.

    The company's new structural battery pack requires the new 4,680 battery cells in order to work.

    Bloomberg

    Tesla's plant near Berlin is scheduled to start production in the summer of 2021.

    Musk said on Wednesday that it will take about two years for Tesla factories in Fremont and Shanghai to embrace the new technology.

    The company said last week that it delivered 139,300 vehicles in the third quarter, a quarterly record for the company.

    Tesla's delivery push has been supported by its new Shanghai factory, the only plant currently producing vehicles outside California.

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        • Capgemini: The circular economy is spurring new thinking on EV batteries
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