Battery cell production costs: China, South Korea, the EU and the US
The chart compares the average cost of producing battery cells in China, South Korea, the European Union and the United States, and shows why the US and the EU lag behind China.
This chart compares the average cost of producing battery cells in China, South Korea, the European Union and the United States.
Materials cost a little more in the EU and the US than in China. The United States, however, has the highest labour costs. Labour is also dearer in the EU and South Korea than in China. The EU, moreover, has to contend with high processing costs — its electricity is more expensive than in China and the US.
Outside China, high battery production costs are driven by several factors: low initial yields and limited automation; differences in energy and labour costs; the higher margins earned by suppliers of resources and materials; and import duties and mark-ups on raw materials.