Industry Value Chain
Cover and introductionp.1
IndustryOverviewp.5
IndustryNotable Eventsp.7
IndustryIndustry Value Chainp.21
IndustryFinancep.50
IndustryCostsp.68
IndustryCell & Pack Manufacturingp.83
IndustryApplicationsp.127
IndustryApplications: EVp.130
IndustryApplications: Stationary Energy Storagep.182
IndustryApplications: Data Centersp.233
IndustryApplications: Aviation, Drones, Spacep.243
IndustryApplications: Roboticsp.256
IndustryApplications: Otherp.264
IndustrySafetyp.266
IndustryCell Design and Materialsp.282
IndustryCell Design and Materials: Li-Ionp.297
IndustryCell Design and Materials: Lithium Sulfurp.360
IndustryCell Design and Materials: Solid-Statep.367
IndustryCell Design and Materials: Sodium-Ionp.387
IndustryCell Design and Materials: Alternative Chemistriesp.397
IndustrySupply Chain: Upstream and Midstreamp.419
IndustrySupply Chain: Recycling & Secondary Marketsp.439
IndustrySoftware / AIp.455
ChinaOverviewp.486
ChinaHistoryp.489
ChinaPolicy Landscapep.498
ChinaTalent & Ecosystem Maturityp.505
ChinaCapitalp.510
ChinaSupply Chainp.518
ChinaTechnology Innovationp.536
AcademiaOverviewp.552
AcademiaResearch Trendsp.555
AcademiaSeminal Literaturep.560
AcademiaFundamentalsp.571
AcademiaLithium-Ionp.575
AcademiaSolid State Batteriesp.594
AcademiaBattery Degradation and Performancep.605
AcademiaNew / Alternative Chemistriesp.618
AcademiaFast Charging & Extreme Fast Chargingp.630
AcademiaArtificial Intelligence and Machine Learningp.632
AcademiaBattery Management System (BMS)p.638
AcademiaRecyclingp.642
AcademiaBattery Safetyp.649
TalentOverviewp.653
TalentWorkforce Landscapep.657
TalentEmerging Trendsp.662
TalentPolicy & Immigrationp.668
TalentCompensation & Benefitsp.675
TalentIndustry Sentimentp.680
TalentSkills & Training Gapsp.687
TalentEducational Developmentp.692
TalentWorkforce Researchp.698
TalentAccess & Advancementp.702
PolicyNorth Americap.706
PolicyEuropep.724
PolicyAsiap.731
PolicyLegalp.737
CommunityConferencesp.755
PredictionsThe Next 12 Monthsp.760
Closing pagesp.762
Industry Value Chain
Page 28 of 768Sources 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.