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Elon Musk Says Tesla Battery Cells Won't Reach High-volume Production Until 2022

(RTTNews) - Elon Musk, chief executive of electric car maker Tesla, said its own battery cells, which are under development now, will not reach high-volume production until 2022. This delay can affect the Cybertruck, Semi, and Roadster programs.

He also said the company intends to increase battery cell purchases from partners Panasonic, LG & CATL, and possibly other partners. Despite the maximum offer from its cell suppliers, Tesla said it still expects significant shortages in 2022 and beyond unless certain actions are taken by the company itself.

In a tweet ahead of its "Battery Day", Musk said, "Important note about Tesla Battery Day unveil tomorrow. This affects long-term production, especially Semi, Cybertruck & Roadster, but what we announce will not reach serious high-volume production until 2022."

Tesla's "Battery Day" event is scheduled to start at 4:30PM ET today, which was rescheduled from April due to the coronavirus pandemic. It is widely expected that the company would announce its plan to build its own battery cell on a large scale.

Electrek had reported last week that Tesla is building a pilot production line for its new battery cell in Fremont, and that its automation group Tesla Grohmann is building the machines for higher-volume production as per the results from the pilot line.

The automaker has patented a new battery cell with a tabless electrode, to which Musk described that the technology is "way more important than it sounds."

Panasonic Corp. in May had said that it was seeing strong demand for battery cells from U.S. partner Tesla.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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