[{"data":1,"prerenderedAt":715},["ShallowReactive",2],{"ticker-data":3,"story-article/how-scale-reduced-battery-costs-but-exposed-auto-companies-to-greater-raw-material-pricing-risks":550},[4,52,82,112,149,187,231,263,298,336,378,418,460,490,520],{"publishedDate":5,"updateFrequency":6,"updateFrequencyText":7,"label":8,"today":9,"last":10,"percentageChange":11,"yearToDate":12,"yearOnYear":13,"oneYearIndexTrend":14,"url":48,"subscription":49,"isProtected":50,"hasAccess":51},"2026-09-16","2wk","Updated every 2 weeks","Lithium",354.99,385.07,-7.81,51.88,112.02,[15,16,18,21,24,27,30,33,36,39,42,45],{"date":5,"value":9},{"date":17,"value":10},"2026-09-02",{"date":19,"value":20},"2026-08-19",372.67,{"date":22,"value":23},"2026-08-05",367.54,{"date":25,"value":26},"2026-07-22",388.26,{"date":28,"value":29},"2026-07-08",399.4,{"date":31,"value":32},"2026-06-24",410.62,{"date":34,"value":35},"2026-06-10",427.77,{"date":37,"value":38},"2026-05-27",449.85,{"date":40,"value":41},"2026-05-13",451.12,{"date":43,"value":44},"2026-04-29",404.38,{"date":46,"value":47},"2026-04-15",354.35,"/lithium/prices",null,false,true,{"publishedDate":5,"updateFrequency":6,"updateFrequencyText":7,"label":53,"today":54,"last":55,"percentageChange":56,"yearToDate":57,"yearOnYear":58,"oneYearIndexTrend":59,"url":48,"subscription":49,"isProtected":50,"hasAccess":51},"Lithium Carbonate",300.39,306.07,-1.86,18.27,69.99,[60,61,62,64,66,68,70,72,74,76,78,80],{"date":5,"value":54},{"date":17,"value":55},{"date":19,"value":63},297.22,{"date":22,"value":65},296.63,{"date":25,"value":67},309.38,{"date":28,"value":69},317.2,{"date":31,"value":71},330.54,{"date":34,"value":73},346.5,{"date":37,"value":75},358.35,{"date":40,"value":77},350.28,{"date":43,"value":79},328.09,{"date":46,"value":81},381.25,{"publishedDate":5,"updateFrequency":6,"updateFrequencyText":7,"label":83,"today":84,"last":85,"percentageChange":86,"yearToDate":87,"yearOnYear":88,"oneYearIndexTrend":89,"url":48,"subscription":49,"isProtected":50,"hasAccess":51},"Lithium Hydroxide",339.85,352.45,-3.57,67.22,122.85,[90,91,92,94,96,98,100,102,104,106,108,110],{"date":5,"value":84},{"date":17,"value":85},{"date":19,"value":93},341.12,{"date":22,"value":95},337.87,{"date":25,"value":97},354.36,{"date":28,"value":99},364.06,{"date":31,"value":101},376.67,{"date":34,"value":103},393.29,{"date":37,"value":105},411.01,{"date":40,"value":107},408.51,{"date":43,"value":109},372.51,{"date":46,"value":111},316.95,{"publishedDate":5,"updateFrequency":113,"updateFrequencyText":114,"label":115,"today":116,"last":117,"percentageChange":118,"yearToDate":119,"yearOnYear":120,"oneYearIndexTrend":121,"url":148,"subscription":49,"isProtected":50,"hasAccess":51},"1wk","Updated every week","Cobalt",178.66,189.92,-5.93,-24.05,25.17,[122,123,124,127,129,132,133,136,138,141,143,146],{"date":5,"value":116},{"date":17,"value":117},{"date":125,"value":126},"2026-08-26",192.6,{"date":19,"value":128},199.83,{"date":130,"value":131},"2026-08-12",217.25,{"date":22,"value":131},{"date":134,"value":135},"2026-07-29",221.25,{"date":25,"value":137},224.44,{"date":139,"value":140},"2026-07-15",223.01,{"date":28,"value":142},223.72,{"date":144,"value":145},"2026-07-01",218.73,{"date":31,"value":147},229.84,"/cobalt/prices",{"publishedDate":150,"updateFrequency":6,"updateFrequencyText":7,"label":151,"today":152,"last":153,"percentageChange":154,"yearToDate":155,"yearOnYear":156,"oneYearIndexTrend":157,"url":186,"subscription":49,"isProtected":50,"hasAccess":51},"2026-09-09","Nickel",119.13,119.61,-0.4,-1.33,12.77,[158,159,160,162,164,166,168,171,174,177,180,183],{"date":150,"value":152},{"date":125,"value":153},{"date":130,"value":161},121.04,{"date":134,"value":163},121.19,{"date":139,"value":165},122.66,{"date":144,"value":167},125.61,{"date":169,"value":170},"2026-06-17",131.5,{"date":172,"value":173},"2026-06-03",134.65,{"date":175,"value":176},"2026-05-20",135.83,{"date":178,"value":179},"2026-05-06",133.76,{"date":181,"value":182},"2026-04-22",125.43,{"date":184,"value":185},"2026-04-08",124.51,"/nickel/prices",{"publishedDate":188,"updateFrequency":189,"updateFrequencyText":190,"label":191,"today":192,"last":193,"percentageChange":194,"yearToDate":195,"yearOnYear":196,"oneYearIndexTrend":197,"url":230,"subscription":49,"isProtected":50,"hasAccess":51},"2026-08-28","1mo","Updated every month","Natural Graphite",80.18,80.66,-0.6,-1.72,-1.7,[198,199,201,204,207,210,213,216,219,222,225,227],{"date":188,"value":192},{"date":200,"value":193},"2026-07-31",{"date":202,"value":203},"2026-06-30",82.87,{"date":205,"value":206},"2026-05-29",82.99,{"date":208,"value":209},"2026-04-30",82.93,{"date":211,"value":212},"2026-03-31",82.39,{"date":214,"value":215},"2026-02-27",81.92,{"date":217,"value":218},"2026-01-30",81.69,{"date":220,"value":221},"2025-12-31",81.58,{"date":223,"value":224},"2025-11-28",81.35,{"date":226,"value":224},"2025-10-31",{"date":228,"value":229},"2025-09-30",81.74,"/natural-graphite/prices",{"publishedDate":200,"updateFrequency":189,"updateFrequencyText":190,"label":232,"today":233,"last":234,"percentageChange":235,"yearToDate":236,"yearOnYear":237,"oneYearIndexTrend":238,"url":262,"subscription":49,"isProtected":50,"hasAccess":51},"Anode Coke",81.86,80.54,1.63,9.96,16.35,[239,240,241,242,244,246,248,250,252,254,256,259],{"date":200,"value":233},{"date":202,"value":234},{"date":205,"value":234},{"date":208,"value":243},84.01,{"date":211,"value":245},79.79,{"date":214,"value":247},75.72,{"date":217,"value":249},74.61,{"date":220,"value":251},74.44,{"date":226,"value":253},72.75,{"date":228,"value":255},71.92,{"date":257,"value":258},"2025-08-29",71.46,{"date":260,"value":261},"2025-07-31",70.35,"/synthetic-graphite/prices",{"publishedDate":264,"updateFrequency":189,"updateFrequencyText":190,"label":265,"today":266,"last":266,"percentageChange":267,"yearToDate":268,"yearOnYear":269,"oneYearIndexTrend":270,"url":297,"subscription":49,"isProtected":50,"hasAccess":51},"2026-09-15","Anode",80.24,0,1.53,2.92,[271,272,274,275,277,280,282,285,287,289,291,294],{"date":264,"value":266},{"date":273,"value":266},"2026-08-17",{"date":139,"value":266},{"date":276,"value":266},"2026-06-15",{"date":278,"value":279},"2026-05-15",79.16,{"date":46,"value":281},81.98,{"date":283,"value":284},"2026-03-16",79.03,{"date":286,"value":284},"2026-02-16",{"date":288,"value":284},"2026-01-15",{"date":290,"value":284},"2025-12-15",{"date":292,"value":293},"2025-11-17",77.79,{"date":295,"value":296},"2025-10-15",77.96,"/anode/prices",{"publishedDate":299,"updateFrequency":189,"updateFrequencyText":190,"label":300,"today":301,"last":302,"percentageChange":303,"yearToDate":304,"yearOnYear":305,"oneYearIndexTrend":306,"url":335,"subscription":49,"isProtected":50,"hasAccess":51},"2026-08-01","Cathode",73.32,77.21,-5.04,14.41,55.07,[307,308,309,312,315,318,321,324,326,328,330,332],{"date":299,"value":301},{"date":144,"value":302},{"date":310,"value":311},"2026-06-01",80.32,{"date":313,"value":314},"2026-05-01",81.71,{"date":316,"value":317},"2026-04-01",77.27,{"date":319,"value":320},"2026-03-01",81.99,{"date":322,"value":323},"2026-02-01",80.5,{"date":288,"value":325},72.79,{"date":290,"value":327},64.08,{"date":292,"value":329},62.01,{"date":295,"value":331},53.51,{"date":333,"value":334},"2025-09-15",49.5,"/cathode/prices",{"publishedDate":337,"updateFrequency":189,"updateFrequencyText":190,"label":338,"today":339,"last":340,"percentageChange":341,"yearToDate":342,"yearOnYear":343,"oneYearIndexTrend":344,"url":377,"subscription":49,"isProtected":50,"hasAccess":51},"2025-03-31","Lithium ion Batteries",74.53,71.3,4.53,-1.6,-20.88,[345,346,348,351,354,357,360,363,366,368,371,374],{"date":337,"value":339},{"date":347,"value":340},"2025-02-28",{"date":349,"value":350},"2025-01-31",71.45,{"date":352,"value":353},"2024-12-31",75.74,{"date":355,"value":356},"2024-11-29",76.98,{"date":358,"value":359},"2024-10-31",77.34,{"date":361,"value":362},"2024-09-30",77.43,{"date":364,"value":365},"2024-08-30",80.56,{"date":367,"value":206},"2024-07-31",{"date":369,"value":370},"2024-06-28",87.2,{"date":372,"value":373},"2024-05-31",90.7,{"date":375,"value":376},"2024-04-30",93.2,"/battery-gigafactory/prices",{"publishedDate":379,"updateFrequency":6,"updateFrequencyText":7,"label":380,"today":381,"last":382,"percentageChange":383,"yearToDate":384,"yearOnYear":385,"oneYearIndexTrend":386,"url":417,"subscription":49,"isProtected":50,"hasAccess":51},"2026-09-10","Black Mass",42.03,43.88,-4.2,-2.58,38.13,[387,388,390,393,396,399,402,405,408,410,412,414],{"date":379,"value":381},{"date":389,"value":382},"2026-08-27",{"date":391,"value":392},"2026-08-13",42.33,{"date":394,"value":395},"2026-07-30",43.42,{"date":397,"value":398},"2026-07-16",46.74,{"date":400,"value":401},"2026-07-02",46.01,{"date":403,"value":404},"2026-06-18",49.57,{"date":406,"value":407},"2026-02-12",47.34,{"date":409,"value":404},"2026-01-29",{"date":288,"value":411},43.15,{"date":220,"value":413},47.05,{"date":415,"value":416},"2025-12-18",41.51,"/recycling/black-mass-prices",{"publishedDate":419,"updateFrequency":189,"updateFrequencyText":190,"label":420,"today":421,"last":422,"percentageChange":423,"yearToDate":424,"yearOnYear":425,"oneYearIndexTrend":426,"url":459,"subscription":49,"isProtected":50,"hasAccess":51},"2026-09-03","Rare Earths",170.83,169.63,0.71,19.72,22.18,[427,428,430,433,436,439,442,445,448,451,453,456],{"date":419,"value":421},{"date":429,"value":422},"2026-08-20",{"date":431,"value":432},"2026-08-06",172.28,{"date":434,"value":435},"2026-07-23",173.94,{"date":437,"value":438},"2026-07-09",171.69,{"date":440,"value":441},"2026-06-25",168.55,{"date":443,"value":444},"2026-06-11",165,{"date":446,"value":447},"2026-05-28",163.89,{"date":449,"value":450},"2026-05-14",172.63,{"date":208,"value":452},175.6,{"date":454,"value":455},"2026-04-16",172.01,{"date":457,"value":458},"2026-04-02",165.47,"/rare-earths/prices",{"publishedDate":188,"updateFrequency":189,"updateFrequencyText":190,"label":461,"today":462,"last":463,"percentageChange":464,"yearToDate":465,"yearOnYear":466,"oneYearIndexTrend":467,"url":377,"subscription":49,"isProtected":50,"hasAccess":51},"NCM Mid-Nickel",152.7,162.48,-6.02,17.38,53.11,[468,469,470,472,474,476,478,480,482,484,486,488],{"date":188,"value":462},{"date":200,"value":463},{"date":202,"value":471},171.08,{"date":205,"value":473},173.65,{"date":208,"value":475},164.53,{"date":211,"value":477},157.28,{"date":214,"value":479},151.44,{"date":217,"value":481},144.5,{"date":220,"value":483},130.09,{"date":223,"value":485},124.6,{"date":226,"value":487},122.35,{"date":228,"value":489},103.5,{"publishedDate":188,"updateFrequency":189,"updateFrequencyText":190,"label":491,"today":492,"last":493,"percentageChange":494,"yearToDate":495,"yearOnYear":496,"oneYearIndexTrend":497,"url":377,"subscription":49,"isProtected":50,"hasAccess":51},"NCM High-Nickel",144.45,149.67,-3.49,26.69,49.06,[498,499,500,502,504,506,508,510,512,514,516,518],{"date":188,"value":492},{"date":200,"value":493},{"date":202,"value":501},157.37,{"date":205,"value":503},160,{"date":208,"value":505},149.53,{"date":211,"value":507},141.97,{"date":214,"value":509},136.99,{"date":217,"value":511},129.81,{"date":220,"value":513},114.02,{"date":223,"value":515},109.17,{"date":226,"value":517},109.02,{"date":228,"value":519},99.44,{"publishedDate":188,"updateFrequency":189,"updateFrequencyText":190,"label":521,"today":522,"last":523,"percentageChange":524,"yearToDate":525,"yearOnYear":526,"oneYearIndexTrend":527,"url":377,"subscription":49,"isProtected":50,"hasAccess":51},"LFP",229.17,218.34,4.96,49.35,83.44,[528,529,530,532,534,536,538,540,542,544,546,548],{"date":188,"value":522},{"date":200,"value":523},{"date":202,"value":531},239.1,{"date":205,"value":533},258.32,{"date":208,"value":535},239.37,{"date":211,"value":537},213.01,{"date":214,"value":539},204.49,{"date":217,"value":541},218.06,{"date":220,"value":543},153.45,{"date":223,"value":545},134.02,{"date":226,"value":547},118.22,{"date":228,"value":549},111.93,{"id":551,"uuid":552,"name":553,"slug":554,"full_slug":555,"content":556,"relatedArticles":713,"relatedVideos":714},112473511782819,"d25f4c16-e748-4f3a-bd0d-a3b56665e7e2","How scale reduced battery costs but exposed auto companies to greater raw material pricing risks","how-scale-reduced-battery-costs-but-exposed-auto-companies-to-greater-raw-material-pricing-risks","article/how-scale-reduced-battery-costs-but-exposed-auto-companies-to-greater-raw-material-pricing-risks",{"_uid":557,"date":558,"tags":559,"editor":560,"content":570,"excerpt":694,"featured":50,"reporter":695,"_editable":699,"component":700,"seo_title":553,"categories":701,"visibility":705,"author_company":49,"featured_image":706,"seo_description":694,"author_full_name":49,"author_job_title":49,"formattedDate":711,"formattedArticleDate":712},"050a82dc-e711-4d24-a3ec-2719b2813413","2021-02-25 00:00",[],[561],{"slug":562,"name":563,"content":564},"didi-bostock","Didi Bostock",{"job_title":565,"image":566,"bio":568,"linkedin":569},"Editor - Energy Transition & Economics",{"filename":567},"https://a.storyblok.com/f/287943243085208/512x512/2c5ca5c1a3/didi-bostock.jpeg","Didi is the Energy Transition & Economics Editor at Benchmark, covering a broad range of markets across the energy transition. His remit spans from downstream sectors such as BESS and EVs, through to midstream such as new technologies and battery production, to upstream critical minerals mining. He also leads on financial analysis across these supply chains, alongside in-depth policy analysis.\n","https://www.linkedin.com/in/didi-bostock-656342198/",{"type":571,"content":572},"doc",[573,586,591,596,601,616,621,650,655,660,673,678,683],{"type":574,"attrs":575,"content":576},"paragraph",{"textAlign":49},[577,580,582,584],{"text":578,"type":579},"Benchmark Mineral Intelligence’s","text",{"text":581,"type":579}," (",{"text":583,"type":579},"Benchmark",{"text":585,"type":579},") data shows that the average price of a lithium ion cell decreased at an annual rate of -17.8% between 2010 and 2020, from $780/kWh in 2010 to $110/kWh (large contract automotive) in 2020.",{"type":574,"attrs":587,"content":588},{"textAlign":49},[589],{"text":590,"type":579},"With the global expansion of battery megafactories and the subsequent scaling up of battery production capacity, cell costs have consistently fallen.",{"type":574,"attrs":592,"content":593},{"textAlign":49},[594],{"text":595,"type":579},"But the cost savings provided by economies of scale have been diminishing. While there are still cost benefits in scaling up production capacity, with the average plant size continuing to increase, the reduction in processing costs achieved by economies of scale will only go so far.",{"type":574,"attrs":597,"content":598},{"textAlign":49},[599],{"text":600,"type":579},"The success of battery manufacturers in scaling up production and driving down costs has exposed them to greater raw material risks. As cell prices near the $100/kWh mark, the bill of materials now takes up a greater share of total battery cell production costs. As such, any shift in raw material prices will now have a greater impact on the costs of production than ever before.",{"type":574,"attrs":602,"content":603},{"textAlign":49},[604,606,614],{"text":605,"type":579},"Data from ",{"text":607,"type":579,"marks":608},"Benchmark’s Lithium ion Battery Database",[609],{"type":610,"attrs":611},"link",{"href":612,"uuid":49,"anchor":49,"target":49,"linktype":613},"https://www.benchmarkminerals.com/contact/","url",{"text":615,"type":579}," shows that cathode and anode raw materials for NCM/NCA cells account for over 55% of the bill of materials (modelled on a 10 GWh non-integrated plant). Any significant price increases for lithium, cobalt, nickel or graphite anode would therefore translate into notably higher battery cell costs and prices.",{"type":574,"attrs":617,"content":618},{"textAlign":49},[619],{"text":620,"type":579},"Auto majors have been insulated from raw material price risks in recent years as falling raw material costs between 2018 to 2020 have helped to sustain the trend of falling lithium ion cell prices.",{"type":574,"attrs":622,"content":623},{"textAlign":49},[624,626,632,634,640,642,648],{"text":625,"type":579},"But the ",{"text":627,"type":579,"marks":628},"low price environment for battery raw materials will not continue forever",[629],{"type":610,"attrs":630},{"href":631,"uuid":49,"anchor":49,"target":49,"linktype":613},"https://source.benchmarkminerals.com/article/the-battery-raw-material-class-of-2021-prices-rise-as-ev-upturn-and-commodity-supercycle-loom",{"text":633,"type":579}," – both the ",{"text":635,"type":579,"marks":636},"cobalt",[637],{"type":610,"attrs":638},{"href":639,"uuid":49,"anchor":49,"target":49,"linktype":613},"https://source.benchmarkminerals.com/article/cobalt-starts-2021-with-a-bang-but-does-this-spell-the-end-of-low-prices",{"text":641,"type":579}," and ",{"text":643,"type":579,"marks":644},"lithium",[645],{"type":610,"attrs":646},{"href":647,"uuid":49,"anchor":49,"target":49,"linktype":613},"https://source.benchmarkminerals.com/article/benchmark-lithium-prices-rise-over-40-in-january-2021-as-lfp-electric-vehicle-demand-goes-back-to-the-future",{"text":649,"type":579}," markets have already undergone recent price increases amid rising demand from the battery sector, without an equal supply response.",{"type":574,"attrs":651,"content":652},{"textAlign":49},[653],{"text":654,"type":579},"The greatest risk to lithium ion cell costs and the transition to electric vehicles, for which the battery makes up over a quarter of total costs, is therefore battery raw material price volatility, which could reverse a decades-long trend of falling prices for lithium ion battery cells",{"type":574,"attrs":656,"content":657},{"textAlign":49},[658],{"text":659,"type":579},"For lithium ion cell prices to continue their downward trend, but also to mitigate for raw material pricing risks, auto majors and battery manufacturers must look at the whole value chain, from raw material sourcing to battery pack architecture to achieve further cost reductions.",{"type":574,"attrs":661,"content":662},{"textAlign":49},[663,665,671],{"text":664,"type":579},"This is the approach outlined by ",{"text":666,"type":579,"marks":667},"Tesla during its Battery Day in September",[668],{"type":610,"attrs":669},{"href":670,"uuid":49,"anchor":49,"target":49,"linktype":613},"https://source.benchmarkminerals.com/article/lithium-silicon-anodes-terafactory-watch-benchmarks-reaction-to-teslas-battery-day-free",{"text":672,"type":579},", with the company looking to execute cost cutting initiatives by integrating its supply chain.",{"type":574,"attrs":674,"content":675},{"textAlign":49},[676],{"text":677,"type":579},"EV makers have already begun forming upstream partnerships in pursuit of this. The tie ups between auto and battery companies, such as Tesla-Panasonic, Volkswagen-Northvolt, and General Motors-LG Chem, have dominated these supply chain integrations to date.",{"type":574,"attrs":679,"content":680},{"textAlign":49},[681],{"text":682,"type":579},"In order to reduce price risk, and to continue to push down cell costs, the next step will be for battery and auto majors to look further upstream.",{"type":574,"attrs":684,"content":685},{"textAlign":49},[686,692],{"text":687,"type":579,"marks":688},"Tesla’s plans to develop its lithium hydroxide plant in Texas",[689],{"type":610,"attrs":690},{"href":691,"uuid":49,"anchor":49,"target":49,"linktype":613},"https://source.benchmarkminerals.com/article/exclusive-tesla-becomes-first-automaker-to-enter-lithium-supply-chain-reshapes-foundations-of-china-dominated-spodumene-2",{"text":693,"type":579},", while still in its infancy, outline the vertical integration model downstream companies need to follow to maintain cost reductions and to protect themselves from raw material price volatility. Unfortunately, with insufficient investment into ramping up supply, this volatility is effectively baked in for the mid-2020s.","Benchmark Mineral Intelligence’s (Benchmark) data shows that the average price of a lithium ion cell decreased at an annual rate of -17.8% between 2010 and 2020, from $780/kWh in 2010 to $110/kWh (large contract automotive) in 2020. With the global expansion of battery megafactories and the subsequent scaling up of battery production capacity, cell costs […]",[696],{"slug":562,"name":563,"content":697},{"job_title":565,"image":698,"bio":568,"linkedin":569},{"filename":567},"\u003C!--#storyblok#{\"name\": \"article\", \"space\": \"\", \"uid\": \"050a82dc-e711-4d24-a3ec-2719b2813413\", \"id\": \"\"}-->","article",[702],{"slug":703,"name":704},"batteries","Batteries","private",{"id":49,"alt":707,"name":707,"focus":707,"title":707,"source":707,"filename":708,"copyright":707,"fieldtype":709,"meta_data":710,"is_external_url":51},"","https://a.storyblok.com/f/287943243085208/56a00e9a7d/bm-tesla-gigafactory-2-2.jpg","asset",{"alt":707,"title":707,"source":707,"copyright":707},"Feb 25, 2021","25th February 2021",[],[],1789982595838]