According to Sawyer Merritt, Tesla has started producing battery packs for selected Model Y vehicles using their advanced 4680 cells. The company now manufactures dry-electrode 4680 cells with both anode and cathode produced in Austin, Texas. Tesla also expects to use domestically sourced cathode materials and local LFP lines, signaling increased vertical integration and potential cost savings. This step is expected to improve battery efficiency and support Tesla's scaling of electric vehicle production, as reported by Sawyer Merritt.