On December 23, Australian graphite product supplier Syrah Resources stated that it has signed a graphite active anode material (AAM) supply agreement with Tesla. Syrah will supply graphite active anode material to Tesla at a fixed price for a period of time. Four years.

It is understood that Syrah mainly targets the US and European markets. It plans to expand the production of the Vidalia plant at a cost of USD 137.5 million in the near future, and is expected to increase its output to 40,000 tons/year by 2025. Syrah currently has a graphite processing plant in the United States, and its 10,000 tons output is expected to meet 3% of the US battery market's demand in 2025.

At present, Tesla is actively deploying the upstream industry chain including batteries. It launched the 4680 electrodeless battery for the first time at the "Battery Day" event in September 2020. The current product yield rate has increased to 80%. It is expected to be in 2022. It will be mass-produced in the United States. At the same time, Tesla also confirmed on November 6, 2021 that it will build a factory in Canada that will focus on the production of battery manufacturing equipment. The Hibar Systems company previously acquired will provide support for it. The equipment launched is planned to be used to produce 4680 batteries.

According to data released by Tesla, the 4680 battery will increase the cell capacity by 5 times than the current 2170 battery, while increasing the cruising range by 16% and reducing the cost by 14%. SEVEN survey minutes show that the large cylindrical battery technology is expected to mature between 2024-2025, and its cost will be significantly reduced to 0.45~0.5 yuan/Wh by then, slightly higher than the 0.3~0.4 yuan/Wh of square lithium iron phosphate batteries, but low 0.5~0.55 yuan/Wh for square ternary batteries and 0.55 yuan/Wh for soft-pack ternary batteries.

In addition, Tesla has built a new battery factory in Brandenburg, Germany, to cater to the rapidly growing demand for electric vehicles in Europe. Musk said that the German factory plans to add a battery production facility. The initial annual installed capacity of the facility will exceed 100 gigawatt-hours and will eventually reach 250 gigawatt-hours.