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When Tesla announced its new 4680 on Battery Day 2020, there was much hype and excitement about this high energy density, low-cost battery being a revolutionary product. Apparently, that is not the case anymore. The way Tesla technology innovates and evolves with time it seems the 4680 is not a big deal anymore.  Even before the 4680 could trend as a great battery, the company is now betting harder on their new LFP batteries. Will this be goodbye for 4680? Let’s find out.

After such a hullabaloo over the new battery breakthrough and how the 4680 would be a game changer for the electric vehicle industry, Tesla has taken a leap ahead and announced a new product the LFP battery that would shove the 4680 into the background. The LFP or Lithium Iron Phosphate battery is not exactly new in the literal sense of the word, it is an older version of a battery but Tesla CEO Elon Musk has been making very bullish statements on iron-based batteries revealing how Tesla is making a “long-term shift” toward older, cheaper lithium-iron-phosphate (LFP) cells in its energy storage products and some entry-level EVs. I’m sure many of you viewers and Tesla fans will be confused, and what’s going to happen to the 4680?

Why is Tesla backtracking on its awesome 4680 battery, perhaps there could be a commercial reason involved. Only recently, China’s largest EV auto manufacturer BYD announced the launch of its own Blade batteries, generating a lot of attention because of its successful test scores. The thing is the Chinese Blade is also an LFP battery and even though Tesla is using these in the EVs that they make in China, it could pose serious competition to Tesla. Is it possible that Tesla’s decision to retract back to LFP batteries has something to do with the commercial challenges posed by the Chinese Blade battery?

LFP batteries are obviously going to impact Tesla electric vehicle manufacturing by leaps and bounds. The company says LFP batteries will reduce the cost of energy storage and vehicles by a considerable margin.
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