In the world of electromobility, the dry electrode process is considered the “Holy Grail” of battery production. Tesla has apparently taken a decisive step here.
• Tesla now produces 4680 cells with fully dry manufactured electrodes
• Technological hurdles, especially in the cathode process, appear to have been overcome
• Significance for costs, production and competitive position is rated as high
In the current annual report, the group writes: “We are now producing dry electrodes for 4680 cells, with the anode and cathode being manufactured in Austin. Production of domestic cathode material in Texas and of LFP plants in Nevada is scheduled to start in 2026.” With this, the electric car manufacturer has announced a breakthrough in an extremely important business area. Tesla had previously published patent US 2025/0364562 – it describes the technical basis of this progress.
Patent US 2025/0364562 – It really is that revolutionary
Analyst Ming, who is considered close to Tesla, explained on X that the patent enables the 4680 cells to be completely converted to a pure dry electrode process for the first time. Until now, Tesla used a so-called hybrid model.
Tesla is already producing the 4680 cells in series, for example for the Cybertruck. However, these “Gen-1” cells only use a dry process for the anode. The cathode continues to be wet coated. It was precisely this step that was considered particularly problematic because the cathode material crumbles easily when dry and is difficult to process. Therefore, energy-intensive drying ovens and solvents were still necessary.
The new patent describes the order in which powder and binder must be processed to create a stable electrode film – without loss of quality. This makes a completely dry production process possible for the first time.
BREAKING?? A new patent, US 2025/0364562, published on Nov.27.2025, reveals the scientific breakthrough that allows Tesla to finally transition its 4680 cells from a “hybrid” manufacturing model to the fully dry electrode process that has historically been impossible to… https://t.co/toPeLMENsA pic.twitter.com/n3vnQbvDa2
– Ming (@tslaming) November 29, 2025
What is important for investors is that with the patent, Tesla not only protects its idea for a solution, but also what it believes is the most efficient way to build batteries using this process on a large scale and has thus found a concrete, practical production route for industrial production.
Musk confirms breakthrough
The CEO made it clear that this success did not come about without sweat and tears Elon Musk personally on his platform
Making the dry electrode process work at scale, which is a major breakthrough in lithium battery production technology, was incredibly difficult.
Congratulations to the @Tesla engineering, production and supply chain teams and our strategic partner suppliers for this excellent…
– Elon Musk (@elonmusk) February 1, 2026
Tesla itself also emphasized the advantages: lower costs, less energy consumption, lower factory complexity and significantly better scalability. “Dry electrode manufacturing reduces costs, energy consumption and factory complexity while significantly increasing scalability.”
:
Dry electrode manufacturing cuts cost, energy use & factory complexity while dramatically increasing scalability https://t.co/z7NCaTR03S
-Tesla (@Tesla) February 2, 2026
In the Q4 update, the company also made it clear that this is not a laboratory project, but rather a successful transition to mass production.
Impact on financial indicators and Tesla shares?
This breakthrough in battery cell production could be of central importance for investors because the effect on economic viability is potentially significant. The process saves energy, makes large drying ovens unnecessary and thus significantly reduces investment and operating costs for new battery factories.
For investors, this progress is much more than a technical footnote, as battery costs make up a significant portion of the total cost of an electric vehicle. If Tesla can significantly increase production efficiency and reduce capital and operating costs with the complete dry electrode process, this will not only improve the margin on its own vehicles – it will also strengthen its competitive position compared to other manufacturers.
In addition, Tesla could also respond to price pressure in the mass market with lower cell costs. Especially in vehicles like the Model Y or an expected cheaper model in the future that is aimed at an even broader buyer segment, cost advantages in the battery would be a clear competitive advantage.
It remains to be seen whether this technological progress will be directly reflected in the share price. Tesla shares have recently been highly volatile. Over the year, the increase is around 8.5 percent, with prices between around 214 and almost 499 US dollars.
The breakthrough is operationally relevant. It is likely to be particularly important for the share in the medium to long term.
Editorial team finanzen.net
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