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Tesla has mastered dry coating for both anodes and cathodes in its 4680 cells, as disclosed in its 2025 business report. Production occurs in Austin, with expectations for cathode materials in Texas and LFP lines in Nevada starting in 2026.

The dry battery electrode (DBE) process enhances production efficiency and reduces costs by eliminating the need for toxic solvents. Tesla's lithium refinery has begun pilot production of lithium hydroxide from spodumene, cutting reliance on international sources. The 4680 cells are reintroduced in select Model Y versions, potentially improving energy density and range.