Value Chain

Industry Value Chain

Battery Industry Value Chain & Profit Margin Profile

Battery Industry Value Chain & Profit Margin Profile

There is a wide range of profit margins and revenue profiles across the battery value chain

2030 Total:

The growing trend of vertical integration blurs traditional boundaries between upstream, midstream and downstream segments Cell & EV manufacturing companies capture more sections of the value chain (midstream & downstream). Despite having lower net profit margins compared to component businesses, they still dominate through their financial strength and scale.

Market: $58.4B CAGR: 15.2%

Market: $62B CAGR: 8.75%

Market: $25.4B CAGR: 30%

Market: $184B CAGR: 18.5%

Market: $74B CAGR: 21.2%

Mining and Recycling, Electrolyte & separator, and equipment companies enjoy higher gross profit margins due to lower Cost of Goods Sold. However, mining & recycling companies have low net profit margins due to high operating expenses (e.g. high upfront capex, licensing, permitting)

Market: $400B CAGR: 26.5%

Data from Chinese publicly listed companies’ financial report 2017-2022

Source: L.E.K. Research

Extracted from the PDF; charts and images may read imperfectly.