Tesla will make its own Robotaxi battery with dry cathode 4680 cells from the Cybertruck

Tesla will be unveiling its autonomous Robotaxi at a big Hollywood event on October 10, and Elon Musk is hoping for the first sanctioned and official Robotaxi ride to happen next year.

Not only will Tesla be producing the Robotaxi at its existing Texas Gigafactory facilities, but it plans to manufacture its battery as well, scooping some of the $41 billion in US government tax credits that will be going its way for the duration of the Inflation Reduction Act subsidy program.

Tesla's Robotaxi battery carries the internal codename NC05, and will be based on the 4680 cells with cheaper dry cathode production method that it developed for the Cybertruck. The numbering infers that Tesla has more 4680 battery models in the works, and insider sources have confirmed that the automaker is planning to unveil four more 4680 cell designs by the end of 2025.

This indicates that other Tesla cars like the Model 3 or Model Y, as well as the upcoming mass market Model 2, could also be powered by Tesla-made 4680 cells, at least in the US. That will essentially leave just the Model S and Model X with batteries that aren't made by Tesla, so the automaker could earn tax credits on both the majority of its vehicles sold in the US, and on their battery production.

Tesla recently bragged about the first Cybertruck made with the frugal dry electrode method. It will reportedly be able to ramp production of such Cybertrucks to 2,000-3,000 units per week by next summer. This will apparently give it enough experience to begin equipping its bestselling vehicles, as well as the Robotaxi, with dry cathode 4680 cells by 2026.

When Elon Musk fired Tesla's battery head and the person in charge of the 4680 cell facilities at Giga Texas earlier this year, the move was aimed at spearheading production. If Tesla couldn't manufacture cheaper 4680 cells before it's too late, he said, it might as well throw in the towel and order them from its suppliers Panasonic and LG.

It would then have to share the government's generous tax credits with suppliers, losing billions in the process. This scenario, however, is looking less likely with the expansion of the 4680 facilities at the Austin Gigafactory, and the introduction of the dry cathode manufacturing.

The latter is key to cutting the battery price by 50% compared to the more conventional cells that Tesla now sources from suppliers. The wet electrode method involves toxic solvents and baking in furnaces that require vast manufacturing space and energy expenditure. By mastering the dry process, Tesla will now be able to make its own batteries on the cheap, with tax credits to boot.

It is also planning a significant 4680 cell production facility expansion at its Gigafactory in Nevada that alone could add capacity for 1.5 million electric vehicles. With this latest revelation that the Robotaxi will be powered by a 4680 NC05 battery, Tesla seems to now be all in on the technology.

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