Sources and links on page 28 (5)
Links embedded in the original report PDF, including citations and other references. These destinations have not been independently reviewed. Links open in a new tab.
- https://www.batterytechonline.com/trends/battery-pack-prices-drop-8-to-record-108kwh-despite-rising-lithium-and-cobalt-costs-in-2025
- https://www.scmp.com/business/china-business/article/3228224/overcapacity-chinas-ev-battery-industry-reach-four-times-demand-2025-putting-small-players-risk
- https://about.bnef.com/insights/clean-transport/new-record-lows-for-battery-prices/
- https://www.metal.com/en/newscontent/103286919
- https://about.bnef.com/insights/clean-transport/electric-vehicle-outlook/
Text on page 28
Overcapacity at 4x Demand Continues to Erode Margins Across the Value Chain
Average global battery pack costs may have fallen to $108/kWh, but there are regional disparities
Chinese battery firms have operating capacity at 4x market current demand and pack costs were roughly $84/kWh (a 13% drop YoY)
Chinese firms are also largely vertically integrated across the battery supply chain and control the majority of global high-purity battery raw material production
This dominance is being exacerbated by fierce competition in China pushing prices downward that will continue into 2026
Pack prices are roughly 44% higher in the U.S. and 56% more in Europe compared to China, causing many cancelled plans and re-evaluations of OEM electrification strategies
Annual Global Capacity in Terawatt-Hours
Graph represents risk-adjusted cumulative lithium battery cell manufacturing capacity by region, compared with as-reported global capacity
Source: Data from BloombergNEF (Distinguished Partner).
Extracted from the PDF; charts and images may read imperfectly.
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