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Volkswagen and Mercedes-Benz secure EV battery materials in partnership with Canada

(Credit: @Volkswagen/Twitter)

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Volkswagen and Mercedes-Benz gained a major advantage in sourcing electric vehicle battery materials today. On Tuesday, the German automakers secured a stream of EV battery materials as it entered a cooperation agreement with the Canadian Government.

The partnership will secure access to materials that are crucial to producing electric vehicle batteries, Reuters reported. Lithium, nickel, and cobalt will be supplied as part of the deal.

Having stable access to the required and crucial battery materials is a significant part of building EVs. Too many companies have had issues getting their hands on EV battery materials, which has stagnated production for some automakers.

Nearly every automaker out there is attempting to catch Tesla, which has been able to build its vehicles with relative ease as it is incredibly vertically integrated. Tesla also has several partnerships with battery cell suppliers and sources raw materials from a number of mining companies. The only thing delaying Tesla’s vehicle delivery forecasts is the company’s inability to keep up with its order log, which gets longer every day.

Financial details are currently unknown, but the partnership is confirmed as German Chancellor Olaf Scholz and several corporate representatives signed memorandum of understanding agreements.

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Volkswagen aims to increase EV production over the next eight years with a massive investment into six large battery cell manufacturing facilities in Europe. The six facilities will have a capacity of 240 GWh.

Volkswagen’s Power Day: Six new cell plants, new unified battery cell, charging network partnerships

Mercedes-Benz is scaling nearly every part of the electric vehicle supply chain currently. The company has launched a new battery plant in Bibb County, Alabama, and has opened a €200 million software facility in Sindelfingen.

Volkswagen’s portion of the memorandum of understanding includes the ramp-up of materials like nickel-cobalt-aluminum batteries and nickel-cobalt-manganese batteries, the report stated. Meanwhile, Mercedes-Benz is planning to explore a partnership with Rock Tech Lithium, which could supply the company with 10,000 tonnes of lithium hydroxide annually.

I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.

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Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Tesla AI6 chips will start sample production at surprising Samsung site

AI6 is expected to be used in Tesla’s expanding lineup of high-volume products, such as the Cybercab and Optimus.

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Credit: Tesla/YouTube

It appears that the initial sample production of Tesla’s next-generation AI6 chip would not start in Samsung’s United States-based facilities. 

AI6 is expected to be used in Tesla’s expanding lineup of high-volume products, such as the Cybercab and Optimus.

Early AI6 production

As noted in a ZDNet Korea report, the production of initial samples of Tesla’s AI6 chip is expected to start at Samsung Electronics’ domestic foundry and packing facilities in South Korea. Mass production for AI6 chips will follow at the tech giant’s Texas-based foundry in Taylor, which is expected to start operations in 2025. Investment in mass production facilities for the Taylor plant are expected to start this year, the publication noted.

Samsung has reportedly finalized the process design kit for its second-generation 2nm technology. This node offers a 12% performance improvement, 25% lower power consumption, and an 8% reduction in chip area compared to its previous-generation counterparts. 

Tesla’s AI6 deal

As per previous reports, Tesla has signed a $16.5 billion contract with Samsung for the production of its AI6 chips. In a post on social media platform X, Musk clarified that $16.5 billion is actually just the bare minimum. Considering that the demand for AI6 chips will be substantial due to the ramp of products such as Optimus and the Cybercab, it would not be farfetched if the deal becomes notably larger in the future.

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Musk has shared his excitement for Samsung’s production of AI6 chips, with the CEO stating on X that he would “walk the line personally” in the facility to “accelerate the pace of progress.” In a follow-up comment, the Tesla CEO stated that Samsung is fully aware of what a real partnership with Tesla will be like. “I had a video call with the chairman and senior leadership of Samsung to go over what a real partnership would be like. Use the strengths of both companies to achieve a great outcome,” Musk wrote in his post. 

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Elon Musk’s Boring Company begins Tesla FSD testing in Las Vegas tunnels

The update was shared by Las Vegas Convention and Visitors Authority (LVCVA) CEO Steve Hill.

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Credit: The Boring Company/X

The Boring Company has started testing Tesla’s Full Self-Driving (Supervised) system in its Las Vegas tunnels. 

The update was shared by Las Vegas Convention and Visitors Authority (LVCVA) CEO Steve Hill in a comment to Fortune.

Controlled FSD testing

In his comments, Hill noted that Tesla’s FSD tests in the Boring Company’s underground tunnels in Las Vegas have been going on for months. However, the full-self driving Teslas have reportedly not been carrying passengers during the tests. Interestingly enough, Hill noted that the FSD-driven vehicles have not had any incidents in the Boring Company tunnels yet, though safety drivers have been required to intervene “periodically.”

Hill further noted that the self-driving Teslas have found some spots that seem quite difficult in the underground tunnels system. The LVCVA CEO added that the rock walls of the Boring Company tunnels and their colorful lighting have created some “interesting but odd lighting” for FSD. That being said, Hill noted that the FSD tests are ongoing, though the LVCVA will likely be a consultant before the self-driving vehicles’ safety drivers are removed. 

The executive, however, noted that it will only be a matter of time before the Teslas in Las Vegas’ Boring Company tunnels are operating without a driver. “Sooner or later, this is going to be autonomous,” Hill said.

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Vegas Loop updates

The Boring Company’s underground transit system has been operating beneath the Las Vegas Convention Center for about four years. While the network is slated for expansion across more of the city, it currently connects the convention grounds with a handful of nearby hotels. Updates from the Boring Company’s official social media account on X suggests that tunneling is underway across other stops in Las Vegas.

As per the Boring Company on its official website, the greater Vegas Loop, when completed, will have 104 stations across 68 miles of tunnels. This should allow the underground system to serve an estimated 90,000 passengers per hour. It will also be able to connect key locations across the city, such as Harry Reid International Airport, Allegiant Stadium, and downtown.

While the Vegas Loop is nowhere near complete, Hill noted that the system is already well appreciated by residents and visitors. As per the LVCVA CEO, the underground transport system is the “highest rated feature we have” at the Convention Center.  “People love it,” he said, adding that the only reason the tunnels are not coming faster is due to holdups with permits. “We’re holding them back. They’re not holding us back,” he stated.

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Tesla appears to have teased a long-awaited Model Y trim for a Friday launch

The company posted it with its Europe & Middle East account, and it appears to be a Model Y Performance, which has been spotted testing at the famed Nurburgring in Germany.

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Credit: Tesla

Tesla appears to have teased a long-awaited Model Y trim for a launch on Friday.

The company posted it with its Europe & Middle East account, and it appears to be a Model Y Performance, which has been spotted testing at the famed Nurburgring in Germany.

The Model Y Performance became a big-time hit after it packed the family-style interior with lightning-fast acceleration, speed, and handling.

As Tesla transitioned the Model Y into the updated “Juniper” design, the company took its time to create an even better vehicle with the new Performance configuration.

It has surely taken its time, but the vehicle appears to have undergone some exterior changes to enhance aerodynamics, handling, and overall performance.

We recently went into what was different about the test units spotted at Nurburgring in an article, but we’ll also list them here:

  • New 21″ wheels
  • All black headliner, a big change that was included in the Model Y L, the first time a Model Y has had that option
  • Updated brakes
  • Bucket seats that appear to be similar to the new Model Y L in China
  • New Carbon Fiber Spoiler
  • Performance Badging
  • Changes to both the front and rear bumper
  • Suspension with Adaptive Dampers

Tesla Model Y Performance zips around Nurburgring with new features

It does not seem like there’s much else it could be, but it is important to note that Tesla has been developing a handful of affordable models. There is a possibility that Tesla could launch one of these on Friday, but it seems unlikely.

The affordable models will likely be coming to the United States or China before they would in Europe.

They would be developed at Gigafactory Texas or Gigafactory Shanghai. The company stated in its Q2 Earnings Shareholder Deck that it had continued to expand its vehicle offerings and successfully manufactured the first builds of a more affordable model in June.

Volume production is planned for the second half of 2025.

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