Costs
Pages 57–68 (12 pages)
Text on page 60
Battery Industry Overcapacity Has Led To Low Selling Prices And Shrinking Profit Margins OVERCAPACITY WAS ONE OF THE BIGGEST DRIVERS BEHIND BATTERY PRICE DECLINES IN 2024
BATTERY MARGINS ARE BEING SQUEEZED
Alongside falling production costs, average selling prices have fallen in 2024 for Chinese made batteries
The driving factor behind this is the large overcapacity that has emerged, with more cells being produced than can be consumed
This leads to manufacturers selling at or below production costs to maintain competitiveness and market share, pushing prices to new lows
Source: Main content provided by BloombergNEF Distinguished Partner), ICCSino LFP cell spot price). Cell cost and price is based on a prismatic cell and excludes taxes.
Extracted from the PDF; charts and images may read imperfectly.
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