Costs

Chinese LFP Cost Floor Under Optimized Conditions: A Scenario Analysis Scenario to optimize LFP costs below $30/kWh

Although LFP at a basic cathode material level is nearing its theoretical limit, further cost reductions can be made:

Manufacturing: e.g. greater mass loading on cathode, further automation (highest impact) Electrode materials: e.g. high compaction density on cathode, silicon loading on anode Passive materials, moving to thin foils, separator, and large cell formats (lowest impact)

However, optimised costs may only be achievable after several years from commissioning due to the scale and learning rate associated with such a large gigafactory and extreme cell metrics.

China LFP cell costs (typical), 2025*

Optimized Scenario

*Assumes lithium carbonate price is a mixture of manufacturer vertically-integrated supply costs and the China 2025 average spot price of 75,600 RMB/t LCE Source: Content & analysis provided by CRU Group Distinguished Partner).

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