Cell & Pack Manufacturing

Decarbonization Levers in Battery Manufacturing Significant emissions reductions are achievable by 2030 through a combination of clean electricity, low-carbon materials, and manufacturing process improvements. Value-Chain Stage

Primary Emissions Source

Key Decarbonization Levers

Electricity Supply Cross-Cutting)

High electricity demand across mining, materials processing, and manufacturing, often supplied by fossil-fuel-based grids

Switch to renewable electricity; deploy high-quality, 24/7 matched green power purchase agreements PPAs across the value chain

Raw-Material Extraction & Refining

Energy-intensive mining and refining of lithium, nickel, cobalt, and other materials; emissions vary widely by location and processing technology

Source materials from producers using electrified mining equipment, renewable electricity, and lower-emission refining technologies

Active-Material Manufacturing Cathode & Anode)

Prolonged high-temperature processing during precipitation, drying, and thermal treatment; heavy reliance on electricity and boilers

Power production with low-carbon electricity; ensure stable, continuous clean power supply to support energy-intensive thermal processes

Cell Manufacturing

Medium-temperature electrode drying 50160 °C, typically using natural gas; additional thermal steps

Adopt dry-coating processes; replace PVDF binders with water-based alternatives (both are tough to implement as not scaled in industry). Electrify electrode drying; supply fully electrified lines with continuous low-carbon electricity

Policy & Market Frameworks

Cost and competitiveness barriers to low-carbon production

Regulatory mechanisms and incentives (e.g., EU CBAM, EU Battery Regulation, U.S. IRA) that encourage low-carbon production, local supply chains, and recycling

Source: McKinsey 1

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