The tariff barriers make it uneconomic to import batteries from China. China has been the main supplier of Tesla Megapack, stationary energy storage batteries. Tesla has enough US and non-China battery supply for cars. Tesla needs to get more batteries for megapacks in the USA. Tesla will be able to use China batteries for the Shanghai Megapack factory.
Jordan of the Limiting Factory describes how Tesla can get batteries for US Megapacks. Tesla has the Lathrop California megapack factory and it is scaled to about 40 Gigawatt hours per year of production. Tesla is preparing a Texas megapack factory over the next few months. Tesla would have gotten batteries imported and into warehouses prior to the tariffs. However, this supply of batteries will run out in the next few months.
There is some other supply of batteries in the US but not enough for Lathrop and not enough to scale up the Texas megapack factory. Tesla would have known that scaling up a larger Texas megapack factory requires 80 to 120 Gigawatt hours of batteries per year. In 2026, this could start to be provided by a new LFP version of the 4680 battery. This would take time to start and scale up.
4680 nickel battery production would need to get to a ramped totally dry battery process.
Tesla has a China independent supply chain for batteries. Tesla has a lithium mine and new refineries for materials. They have an alternative to graphite for batteries. This independent battery supply chain is just starting in some areas.
Tesla has indicated that they have solutions that will be ramped soon. They do not define all of those solutions and do not define soon.
Brian Wang is a Futurist Thought Leader and a popular Science blogger with 1 million readers per month. His blog Nextbigfuture.com is ranked #1 Science News Blog. It covers many disruptive technology and trends including Space, Robotics, Artificial Intelligence, Medicine, Anti-aging Biotechnology, and Nanotechnology.
Known for identifying cutting edge technologies, he is currently a Co-Founder of a startup and fundraiser for high potential early-stage companies. He is the Head of Research for Allocations for deep technology investments and an Angel Investor at Space Angels.
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