Chinese battery companies are manufacturing the cheapest cells in the world right now, and it’s not just because of cheap labor and state subsidies. They’ve streamlined the process in a way that has industry experts wondering how international competitors can ever catch up.
In this episode, Shayle talks to James Frith, principal at the battery investment firm Volta Energy Technologies. He argues that there are multiple factors behind Chinese manufacturers’ efficiency and speed, like the know-how to operate plants with high yields, easy access to suppliers, and ability to squeeze margins to near zero. Shayle and James cover topics like:
The confluence of overcapacity, softening demand, and low commodity prices that could result in a “bloodbath” of market consolidation in China
Why the low cell prices on the spot market hit stationary storage harder than EVs
Cost drivers of cell manufacturing, like labor, power, and environmental regulations
What Western companies can learn from China’s cheap prices
Why James is bullish on partnerships between Chinese and Western companies
Recommended resources
Latitude Media: How Northvolt’s bet on lithium metal batteries fell apart
Latitude Media: A summer of ups and downs in the battery sector
Latitude Media: DOE designates $3 billion for the advanced battery supply chain
Catalyst is brought to you by EnergyHub. EnergyHub is working with more than 70 utilities across North America to help scale VPP programs to manage load growth, maximize the value of renewables, and deliver flexibility at every level of the grid. To learn more about their Edge DERMS platform and services, go to energyhub.com.
On December 3 in Washington, DC, Latitude Media is bringing together a range of experts for Transition-AI 2024, a one-day, in-person event addressing both sides of the AI-energy nexus: the challenges AI poses to the grid, and the opportunities. Our podcast listeners get a 10% discount on this year’s conference using the code LMPODS10. Register today here!
Unpacking China’s cheap battery costs | Catalyst with Shayle Kann podcast - Listen or read transcript on Metacast
