Tesla's 4680 battery initiative has encountered a significant hurdle. According to South Korean battery material supplier L&F Co., the worth of its battery material supply agreement with Tesla has nosedived from a staggering $2.9 billion (roughly RMB 20.3 billion) to a mere KRW 9.73 million (around RMB 47,000), marking a staggering 99.99% decline. Initially, the contract was set to supply high-nickel cathode materials for Tesla's Cybertruck from January 2024 through December 2025. Yet, owing to the Cybertruck's sales figures falling drastically short of projections, the quantity of materials to be supplied has plummeted, effectively rendering the contract value almost negligible.

Tesla's original vision for the 4680 battery was to slash electric vehicle costs and implement it across its entire model lineup. However, the project has been beset by technical obstacles. For instance, the tabless electrode design demands an exceptionally high degree of precision in laser welding. Additionally, the dry electrode process has encountered issues with insufficient mixing uniformity and inadequate adhesion of the electrode sheet. These challenges have led to subpar yield rates, causing repeated postponements of mass production timelines.

At present, the 4680 battery is exclusively utilized in the Cybertruck. The lackluster sales performance of this vehicle has only deepened the woes of the 4680 battery project.