Manufacturing capacity for lithium-ion batteries (LIBs)—which power many consumer electronics and are increasingly used to power electric vehicles—is heavily concentrated in East Asia. To illuminate the factors that drive regional competitiveness in automotive LIB cell production, this study models cell manufacturing cost and minimum sustainable price, and examines development of LIB supply chains and current LIB market conditions. The study shows that factors driving the cost competitiveness of LIB manufacturing locations are mostly built—supply chain developments and competition, access to materials, and production expertise. Some regional costs—including cost of capital, labor, and materials—are significant and should be considered.
