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
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