Production Costs by Region
- China: The average production cost at the cell level for nickel cobalt manganese (NCM) chemistries in China is approximately $95.81/kWh. For lithium-ion battery packs, prices in China are the lowest, averaging $94/kWh.
- United States: The cost for producing NCM battery cells in the US is around $98.06/kWh without considering tax incentives. Battery pack prices in the US are about 31% higher than in China, reflecting higher production costs and lower manufacturing scale.
Impact of Inflation Reduction Act (IRA) Tax Credits in the US
The US has introduced tax credits through the Inflation Reduction Act, which could potentially reduce costs and make US production more competitive with China by the end of the decade.
Price Dynamics by Application
Lithium-ion battery prices also vary by application. For example, battery electric vehicle (BEV) packs averaged $97/kWh globally, crossing the $100/kWh threshold for the first time. Energy storage system (BESS) batteries, which are commonly imported from China, have per-kilogram costs averaging $19.7 in the US, reflecting a lower cost compared to EV batteries.
Overall, while China maintains a cost advantage due to economies of scale and lower manufacturing costs, the US is working to close this gap with policy incentives.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-are-the-cost-differences-between-lithium-ion-batteries-produced-in-china-versus-the-us/
