Tesla just made a major move that will affect the future of the Cybertruck and the Model Y — here's what to know

Tesla plans to expand production of its revolutionary 4680 EV battery cell thanks to a new facility near the company's pilot production plant in Fremont, California. 

Unveiled in 2020, the 4680 battery cells are featured in some popular Model Y vehicles and planned for others, as well as the upcoming Cybertruck, Electrek reported. 

The cell, which is Tesla's fourth type of lithium-ion EV battery (EVB), is larger than previous battery types and boasts a longer range in addition to more power, according to a rundown by History Computer. 

Thanks to learnings from previous EVBs, the 4680 could be cheaper to produce and offer a longer distance per charge. It has the potential for faster charge times and reaching a full charge in under an hour, Electrek indicated.

The innovative new cell features a dry electrode coating process that Reuters reported "has the potential to dramatically reduce the size, cost, energy consumption, and production cycle time of battery manufacturing plants, while boosting the energy density and power of battery cells."

Unlike some previous EVBs used by Tesla, the 4680 is produced in-house. The Fremont facility aims to support the production of EVBs ahead of the rollout of the highly anticipated Cybertruck expected in late 2023. 

While the 4680 batteries have been in production at other Tesla facilities, Teslarati noted that the new Fremont location will be instrumental in ramping up output in the coming years.

In addition to batteries, the growing Tesla campus in Fremont continues to create jobs in the region, especially in engineering as well as those related to manufacturing and assembly.

Increasing battery cell production in North America also qualifies more Tesla EVs for the full clean vehicle credit introduced with the Inflation Reduction Act. For vehicles to qualify, the manufacturer must meet specific battery, sourcing, and assembly requirements.

Joining the 4680 battery cell production already taking place in Texas, the Fremont location is certain to play a critical role in the future of Tesla's electric vehicles.  

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