Tesla’s new tab-less cylindrical battery cell has the potential to become a game-changer in the electric vehicle industry, according to the Korea Automotive Technology Institute (KATECH).

The KATECH released an industry trend report on Monday that said the EV market must prepare for what is to come after Tesla starts mass producing its 4680 batteries.

Tesla’s 4680 battery is 46 millimeters in diameter and 80 millimeters in length, and offers six times the power of the carmaker’s previous cells and five times the energy capacity.

The institute predicts battery companies that currently focus on producing unified cells and pouch cells will have to choose between continuing to speedily produce their cells or coming up with their own tab-less cylindrical cells.

“Automakers using the current unified cells and pouch cells will probably face difficulty in price competency with EVs equipped with the cylindrical battery cell that costs less to manufacture,” said KATECH.

It added that as important as it is to develop next-generation secondary battery technology, it is just as important to improve the design and economic feasibility of existing secondary battery technology.

“Tesla aims to lower the cost of producing batteries significantly to $60 per kWh. It focuses on optimizing technology and maintaining cost control through the internalization of battery technology, which accounts for 40 percent of electric vehicle production costs,” said KATECH.