01 Industry Upgrade

Large-cylinder batteries have evolved from an industry “concept” three years ago into a tangible profit point for lithium battery companies today.

The 4680 battery technology path promoted by Tesla is rapidly becoming an industry consensus. Companies like CATL, EVE Energy, Blues Energy, and Truna Storage are accelerating their large-cylinder battery project layouts.

Companies view large-cylinder batteries as a critical breakthrough to escape price wars and enhance profitability.

From a materials perspective, high-nickel cathodes and silicon-based anodes exhibit higher compatibility within the large-cylinder structure. Industry institutions estimate that after adopting high-energy-density materials, the comprehensive cost of large-cylinder batteries can be reduced by approximately 18% compared to traditional solutions, providing companies with greater profit margins.

From the production side, the barriers to large-scale production of large-cylinder batteries are higher. They demand stricter process requirements for tab welding, electrolyte filling, etc. Yield rates directly determine cost advantages, meaning first-mover companies will establish more enduring technological barriers.

Tesla’s data shows that compared to traditional 2170 cells, 4680 batteries can reduce assembly costs by about 50% and increase range by 16%. This significant advantage is pushing more automakers to incorporate large-cylinder batteries into their next-generation product plans.

02 Market Response

As technological maturity increases, market acceptance of large-cylinder batteries is rising rapidly.

Truna Storage is progressing swiftly with its 46-series large-cylinder battery project. CATL began small-batch deliveries of its 4695 battery to customers in 2025, with product energy density ranking among the industry’s highest.

Automaker demand for long range and fast-charging performance aligns closely with the technical features of large-cylinder batteries. Well-known domestic and international brands, including BMW, Porsche, and Li Auto, plan to equip their next-generation models with large-cylinder batteries.

Industry data analysis predicts that by 2026, global installations of large-cylinder batteries will exceed 200 GWh, accounting for over 15% of total power battery installations—a leap from less than 5% in 2024.

The supply chain ecosystem is also rapidly improving. A dedicated supply system for large-cylinder batteries, encompassing structural components, electrolytes, and manufacturing equipment, is taking shape, further reducing production costs and enhancing product consistency.

03 Performance Turnaround

Several lithium battery companies attribute their improved performance to the contribution of large-cylinder batteries. This new product line is becoming a “ballast stone” for industry profitability.

According to corporate performance forecasts, in 2025, many previously loss-making lithium battery firms successfully returned to profitability. The gross margin of their large-cylinder battery business is significantly higher than that of traditional products, serving as the primary engine for profit growth.

EVE Energy stated in investor relations activities that the capacity utilization rate of its large-cylinder battery production lines has exceeded 85%, higher than the company’s average, becoming a key factor in its 2025 profitability improvement.

Blues Energy’s large-cylinder batteries are already being supplied in volume to overseas high-end power tool customers. The gross margin of its large-cylinder battery business is nearly 5 percentage points higher than that of traditional cylindrical batteries, effectively improving the company’s profit structure.

Industry analysts note that large-cylinder batteries command stronger pricing power, with product premiums generally 10%-15% higher than traditional prismatic batteries, providing lithium battery companies with a breakthrough from low-price competition.

04 Technical Advantages

The rise of large-cylinder batteries is no coincidence. It meets core market demands for next-generation power batteries across multiple dimensions.

From a safety performance perspective, the curved surface of large-cylinder batteries better accommodates internal pressure changes. Their unique pressure relief valve design ensures directional venting during thermal runaway, significantly reducing the risk of pack-wide thermal diffusion.

Innovation in production is equally noteworthy. Tesla’s “dry electrode” process is highly compatible with the large-cylinder structure, eliminating the drying step required in traditional wet coating, reducing production costs by about 18% and energy consumption by about 70%.

Standardization is another major advantage of large-cylinder batteries. Unlike prismatic cells of various shapes, the 46-mm diameter has become an industry standard. This enables high unification of production lines, module design, and pack solutions, substantially lowering R&D and manufacturing costs.

Regarding charging performance, the radial heat conduction path of large-cylinder batteries is superior, supporting over 4C fast charging with controllable temperature rise, effectively addressing EV users’ “range anxiety.”

05 Future Landscape

Facing the strategic opportunity presented by large-cylinder batteries, companies across the industrial chain have begun comprehensive layouts, striving to secure advantageous positions in the new technology cycle.

Truna Storage plans to achieve mass production of its 46-series large-cylinder batteries by the end of 2025. With a total investment of approximately 10 billion yuan and a planned annual capacity of 30 GWh, the project demonstrates the firm’s strong confidence in this technological path.

Beyond its existing 4695 battery, CATL is also developing larger-diameter large-cylinder products to meet application scenarios with higher energy density requirements, such as commercial vehicles.

Battery material companies are innovating simultaneously. Tinci Materials has developed high-conductivity electrolytes suitable for large-cylinder batteries; Ronbay Technology has launched high-nickel single-crystal cathode materials compatible with large-cylinder cells, which can increase energy density by about 5%.

Equipment manufacturers are also keeping pace. Lead Intelligent has introduced fully automated assembly lines for large-cylinder batteries, increasing production speed to 15 PPM, with single-line annual capacity reaching 1.5 GWh, providing hardware support for the scaled production of large-cylinder batteries.

The large-cylinder battery race has just begun. Industry insiders predict that the global market size for large-cylinder batteries is expected to exceed 100 billion yuan by 2026, accounting for over 40% of the entire cylindrical battery market.

After enduring brutal price wars in the lithium battery industry, large-cylinder batteries are becoming a key lever for companies to achieve technological premium and restore profitability.

This new track has attracted attention from the entire industrial chain, including battery manufacturers, material suppliers, equipment firms, and even vehicle manufacturers. An industry-wide transformation centered on large-cylinder batteries is fully unfolding.

The industry profit model is shifting from capacity-driven to technology-driven, a transformation that will determine the competitive landscape and market direction of the lithium battery industry in the coming years.