Tesla is ready to increase California's 4680 battery production and has leased a factory of nearly 20, 000 square meters.

According to foreign media reports on June 12, Tesla, who tripled the production capacity of 4680 batteries in the third quarter of last year, is preparing to increase the production capacity of their batteries in California, and they have leased relevant factories.

Foreign media quoted two sources as saying that Tesla had leased a factory in California, and the source made it clear that the factory leased by Tesla would be used for the production of 4680 batteries.

According to sources, Tesla's new leased plant, which is more than 210000 square feet, or about 20000 square meters, comes from an industrial real estate investor. The related plant was originally planned to become the manufacturing center of the Applied Materials Company, but they have cancelled the lease.

Foreign media reported that Tesla's newly leased plant is only three miles from their factory in Fremont, California, and closer to their factory on Kato Road, which is now considered to be the main production plant for 4680 batteries.

The 4680 battery, launched by Tesla at the Battery Day event in 2020, is larger, higher energy density, higher output power and lower cost than the previous 2170 battery.

Although suppliers such as Panasonic and LG New Energy are also carrying out related research and development after Tesla launched 4680 batteries, Tesla himself is also producing. Foreign media reported that in the conference call of financial analysts in the third quarter of last year, Tesla CFO revealed that by the end of the fourth quarter, the production capacity of 4680 batteries would exceed the production demand of 1000 vehicles.