

Energy
Tesla battery expert says they’ve doubled lithium-ion battery cell life
The following post was originally published on EVANNEX
Tesla [NASDAQ: TSLA] is not standing still when it comes to improving lithium-ion technology and reducing battery costs. It was recently reported that Tesla’s battery partner, Panasonic, announced that, “We think the existing technology can still extend the energy density of Li-ion batteries by 20% to 30%. But there is a trade-off between energy density and safety. So if you look for even more density, you have to think about additional safety technology as well. Solid-state batteries are one answer.”
But many feel solid state batteries are years away. That said, are there other next-gen solutions that might come to fruition sooner? It turns out that Tesla has one of the world’s premiere battery experts, Jeff Dahn, working on a myriad of potential solutions (see below). And Dahn recently explained that: “doubling the lifetime of the [battery] cells used in the Tesla products… was the goal of the project and it has already been exceeded. We are not going to stop… we are going to go as far as we can.” Dahn said that his Tesla research is already “going into the company’s products.”
Above: Jeff Dahn explains his role with Tesla
Tesla’s new 2170 lithium-ion battery will soon appear in the Model 3. In addition to improved battery chemistry, there are ongoing cost reductions taking place as “Tesla has become the largest buyer of li-ion batteries and now [with the Gigafactory] it is trying to become the largest producer of li-ion batteries.” Kurt Kelty, Tesla’s longtime director of battery technology, is finding economies of scale sourcing raw materials: “Nickel, Cobalt, Graphite and lithium [which serve] as the biggest cost drivers for the overall battery cost.” It’s already been confirmed that Tesla has reduced battery costs overall by 35%.
Visual Captialist also points out another area where battery improvements may exist — the cathode: “Cathode choice is a major factor for determining battery energy density, and cathodes also typically account for 25% of lithium-ion battery costs. That means the cathode can impact both the performance and cost pieces of the $/kWh equation – and building a better cathode will likely be a key driver for the success of the green revolution… [and] cathode development has many exciting prospects. These include concepts such as building cathodes with layered composite structures or orthosilicates, as well as improvements to the fundamental material processes used in cathode assembly.”

Above: Tesla and other examples of commercialized cathode formulations and the metals needed for them – aside from lithium (Source: Visual Captialist via EVANNEX)
Visual Capitalist* notes that, “The type of cathode chosen can affect the energy density, power density, safety, cycle life, and cost of the overall battery, and this is why researchers are constantly experimenting with new ideas and combinations… [and] as these new technologies are applied, the cost of lithium-ion batteries will continue to decrease. In fact, experts are now saying that it won’t be long before batteries will hit $80/kWh – a cost that would make EVs [electric vehicles] undeniably cheaper than traditional gas-powered vehicles.” Check out the infographic below for more clues into how changes to the cathode could represent further improvements to the lithium-ion battery.
Energy
Tesla Megapacks powers the xAI Colossus supercomputer
Tesla Megapacks step in to stabilize xAI’s Colossus supercomputer, replacing natural gas turbines. Musk’s ventures keep intertwining.

Tesla Megapack batteries will power the xAI Colossus supercomputer in Memphis to ensure power stability. The collaboration between Tesla and xAI highlights the synergy among Elon Musk’s ventures.
The artificial intelligence startup has integrated Tesla Megapacks to manage outages and demand surges, bolstering the facility’s reliability. The Greater Memphis Chamber announced that Colossus, recently connected to a new 150-megawatt electric substation, is completing its first construction phase. This transition addresses criticism from environmental justice groups over the initial use of natural gas turbines.
“The temporary natural gas turbines that were being used to power the Phase I GPUs prior to grid connection are now being demobilized and will be removed from the site over the next two months.
“About half of the operating turbines will remain operating to power Phase II GPUs of xAI until a second substation (#22) already in construction is completed and connected to the electric grid, which is planned for the Fall of 2025, at which time the remaining turbines will be relegated to a backup power role,” the Chamber stated.
xAI’s rapid development of Colossus reflects its ambition to advance AI capabilities, but the project has faced scrutiny for environmental impacts. The shift to Megapacks and grid power aims to mitigate these concerns while ensuring operational continuity.
The Megapack deployment underscores the collaboration among Musk’s companies, including Tesla, SpaceX, Neuralink, and The Boring Company. Tesla appears to be the common link between all of Musk’s companies. For example, The Boring Company built a tunnel in Giga, Texas. In addition, Musk has hinted at a potential collaboration between the Tesla Optimus Bot and Neuralink. And from January 2024 to February 2025, xAI invested $230 million in Megapacks, per a Tesla filing.
Tesla Energy reported a 156% year-over-year increase in Q1 2025, deploying 10.4 GWh of storage products, including Megapacks and Powerwalls. Tesla’s plans for a new Megapack factory in Waller County, Texas, which is expected to create 1,500 jobs in the area, further signal its commitment to scaling energy solutions.
As xAI leverages Tesla’s Megapacks to power Colossus, the integration showcases Musk’s interconnected business ecosystem. The supercomputer’s enhanced stability positions xAI to drive AI innovation, while Tesla’s energy solutions gain prominence, setting the stage for broader technological and economic impacts.
Energy
Tesla Energy celebrates one decade of sustainability
Tesla Energy has gone far since its early days, and it is now becoming a progressively bigger part of the company.

Tesla Energy recently celebrated its 10th anniversary with a dedicated video showcasing several of its milestones over the past decade.
Tesla Energy has gone far since its early days, and it is now becoming a progressively bigger part of the company.
Tesla Energy Early Days
When Elon Musk launched Tesla Energy in 2015, he noted that the business is a fundamental transformation of how the world works. To start, Tesla Energy offered the Powerwall, a 7 kWh/10 kWh home battery system, and the Powerpack, a grid-capable 100 kWh battery block that is designed for scalability. A few days after the products’ launch, Musk noted that Tesla had received 38,000 reservations for the Powerwall and 2,500 reservations for the Powerpack.
Tesla Energy’s beginnings would herald its quiet growth, with the company later announcing products like the Solar Roof tile, which is yet to be ramped, and the successor to the Powerwall, the 13.5 kWh Powerwall 2. In recent years, Tesla Energy also launched its Powerwall 3 home battery and the massive Megapack, a 3.9 MWh monster of a battery unit that has become the backbone for energy storage systems across the globe.
Key Milestones
As noted by Tesla Energy in its recent video, it has now established facilities that allow the company to manufacture 20,000 units of the Megapack every year, which should help grow the 23 GWh worth of Megapacks that have already been deployed globally.
The Powerwall remains a desirable home battery as well, with more than 850,000 units installed worldwide. These translate to 12 GWh of residential entry storage delivered to date. Just like the Megapack, Tesla is also ramping its production of the Powerwall, allowing the division to grow even more.
Tesla Energy’s Role
While Tesla Energy does not catch as much headlines as the company’s electric vehicle businesses, its contributions to the company’s bottom line have been growing. In the first quarter of 2025 alone, Tesla Energy deployed 10.4 GWh of energy storage products. Powerwall deployments also crossed 1 GWh in one quarter for the first time. As per Tesla in its Q1 2025 Update Letter, the gross margin for the Energy division has improved sequentially as well.
Elon Musk
Tesla Energy shines with substantial YoY growth in deployments

Tesla Energy shined in what was a weak delivery report for the first quarter, as the company’s frequently-forgotten battery storage products performed extraordinarily well.
Tesla reported its Q1 production, delivery, and deployment figures for the first quarter of the year, and while many were less-than-excited about the automotive side, the Energy division performed well with 10.4 GWh of energy storage products deployed during the first quarter.
This was a 156 percent increase year-over-year and the company’s second-best quarter in terms of energy deployments to date. Only Q4 2024 was better, as 11 GWh was recorded.
Tesla Energy is frequently forgotten and not talked about enough. The company has continued to deploy massive energy storage projects across the globe, and as it recorded 31.5 GWh of deployments last year, 2025 is already looking as if it will be a record-setting year if it continues at this pace.
Tesla Megapacks to back one of Europe’s largest energy storage sites
Although Energy performed well, many investors are privy to that of the automotive division’s performance, which is where some concern lies. Tesla had a weak quarter for deliveries, missing Wall Street estimates by a considerable margin.
There are two very likely reasons as to why this happened: the first is Tesla’s switchover to the new Model Y at its production facilities across the globe. Tesla said it lost “several weeks” of production due to the updating of manufacturing lines as it rolled out a new version of its all-electric crossover.
Secondly, Tesla could be facing some pressure from pushback against the brand, which is what many analysts will say. Despite the publicity of attacks on Tesla drivers and their vehicles, as well as the company’s showrooms, it would be safe to assume that we will have a better picture painted of what the issue is in Q2 after the company reports numbers in July.
If Tesla is still struggling with lackluster delivery figures in Q2 after the Model Y is ramped and deliveries are more predictable and consistent, we could see where the argument for brand damage is legitimate. However, we are more prone to believe the Model Y, which accounts for most of Tesla’s sales, and its production ramp is likely the cause for what happened in Q1.
In what was a relatively bleak quarter, Tesla Energy still shines as the bright spot for the quarter.
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