Cell Costs

Cell costs

Cell Costs

Future Of Cell Costs

Future Of Cell Costs

Cell costs expected to continue to decline through the decade Falling raw material prices result in average cell production costs in China dropping below $55/kWh for LFP and $65/kWh for NMC by 2028

Source: [1] CRU Group [2] BloombergNEF

$65/kWh would enable <$100/kWh on pack level; cells typically account for 70% of combined pack + cell cost, with remaining 30% due to cost of pack mechanics The cost outlook is primarily influenced by lithium supply-demand-price dynamics Yield rates are already approaching practical limits in China (~99%) Processing (also including electricity), labour, and material costs outside China are generally higher. For example, the cost of manufacturing NMC 811 pouch cells in USA in 2023 was ~80% higher than in China Improving yield rates and economies of scale, along with subsidies, will help with cost-competitiveness for ex. China manufacturers

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