Project Blue analysis shows that low cost LFP batteries are outcompeting NCM batteries on a US$/kWh basis, supported by low lithium prices and low labour and energy costs in Chinese facilities.

The largest cost component of both types is cathode costs, with NCM also therefore exposed to nickel, cobalt, and manganese.

Despite rising lithium prices, Project Blue expects LFP to remain the lowest cost battery chemistry as the more intense manufacturing process of NCM, coupled with rising raw material costs keeps NCM as the higher cost chemistry.

Project Blue's analysis draws from our comprehensive market intelligence for all stages of the lithium-ion battery supply chain, including our Lithium-Ion Batteries Research Service and our Cathode & Precursor Research Service - speak to our experts to learn more.