Giga Factories and Battery Companies

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Production yields are critical to cost competitiveness!

Using the new CRU Battery Cost Model you can assess the impact of factory yield rates and quantify the risk of a slow ramp rate. In the example below, I’ve modelled three factories in the USA with low (50%), medium (70%), and high-yield (90%) scenarios.

A low yield can result in increased production costs of almost +$60/kWh. It drives up consumption of materials, energy, and equipment.

Startup companies will experience low yields in a longer ramp-up period compared to experienced manufacturers. Subsidies can help, but their success in enabling cost-competitiveness will mainly depend on US and EU manufacturers achieving sufficient yields quickly.

Last month I spoke on this topic alongside several of my CRU colleagues in a webinar. Thank you Peter Ramsay for joining and covering this in this EV inFocus article: https://lnkd.in/e9vaFwvQ

Sign up to watch a recording of the webinar here: https://lnkd.in/eSWpV3gm

Please reach out if you’d like a demo of our new tool to see how yield rates, material prices, production routes and cell design impact battery cell production costs!

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