Study says U.S. advanced battery manufacturing costs are similar to that of China.
According to a recent study, the costs of advanced battery manufacturing in the U.S. and China are roughly the same, given that advanced manufacturing is highly automated and that energy and logistics costs are significantly higher in China.
This study compares the costs of manufacturing high-performance 18650-size lithium-ion cells in China and in the United States. The comparison reflects all costs of constructing and staffing a stand-alone manufacturing plant under current industry practice and using modern automated production techniques.
Identical materials are used for each of the cells. This study finds that, when produced at large volume using automated equipment, cell materials account for 78e80% of total cell cost; costs for highly trained personnel are similar in China and the United States. Several other major drivers of production costs (such as logistics, land acquisition and energy costs) are higher in China, making total costs for each location roughly comparable. These comparisons suggest that U.S. manufacture of advanced batteries can be cost-competitive, and that Chinese battery manufacturing plants do not offer significant advantages in terms of profitability.
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