Costs

China Cell Production Costs Have Rebounded in 2025 with Raw Material Disruption, but Remain Relatively Low Li-ion cell manufacturing costs have crashed since 2023 thanks to:

Raw material prices have plummeted Reduced use of passive materials Increasing manufacturing efficiency

Speculation over the short-term future of lithium and cobalt supply has raised raw material spot prices and impacted cell manufacturing costs, but they remain low relative to previous years. Some producers are more insulated from material prices than others, having long-term contracts, vertically integrated supply, or strong bargaining power. Margins also vary by manufacturer, and China provides a sales tax rebate for exports, although this is to be phased out. However, there is no benchmark price for cells as batteries are highly bespoke to the customer. ESS and EV battery buyers mainly purchase through long-term contracts as altering cell supplier or chemistry requires lengthy qualification times. Source: Content & analysis provided by CRU Group Distinguished Partner). For more information, visit crugroup.com Cell costs based on raw material spot prices are not representative of most actual production costs.

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