Costs

Tier 1 Cell Manufacturers Have Bolstered Their Profitability Offering integrated energy storage systems has helped grow revenues for Chinese cell manufacturers as the storage market continues to boom. They have also benefited from commanding higher prices/margins in growing overseas markets, and continue to limit investment in new capacity expansions in China. Exposure to the US market and its weakened EV sales, combined with growing competition in Europe, has harmed revenues for Korean cellmakers, but they have already managed to turn profit margins around with the expansion into BESS, among other strategies. There remains a significant disparity between Tier 1 versus smaller manufacturers – the former have had the resources and strategies to bolster profitability:

Source: Content & analysis provided by CRU Group Distinguished Partner). For more information, visit crugroup.com Financial data from company filings.

Vertical integration (both ways) Strong bargaining power with suppliers, and aggressively securing long-term contracts Expansion into BESS Increasing yields / manufacturing efficiency Overseas investment R&D investment

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