The world’s total LIB cell manufacturing facilities are primarily located in China, Japan, and Korea. Together, these countries hosted 88% of total global LIB cell manufacturing capacity for all end-use applications.1 These countries were also home to a significant share of LIB-specific materials manufacturing capacity, including that for cathodes (85% of global capacity), anodes (97%), separators (84%), and electrolytes (64%). This concentration of cell manufacturing capacity and upstream supply chains contributes to LIB industrial clusters in each of these countries. The numbers do not include new start up manufactures.
LIB Supply Chain:
Major components of the automotive LIB value chain include processed materials for electrodes and other components. With respect to vertical integration, various manufacturers are employing different approaches. Pack design and production is typically performed by automakers themselves . In contrast, LIB electrode materials, other processed materials, and complete sealed cells can be shipped without significant cost penalty relative to current market prices, and can often occur in locations separate from pack production. The ability to ship these goods suggests that regions and firms producing competitively priced cells, components, and processed materials can effectively serve global markets.
The LIB manufactures are made up of several processing steps and performed in separate facilities; Raw materials such as lithium and graphite are mined, then processed for purity or specific Composition, The processed materials are used to manufacture electrodes, which are key components of LIB cells. Electrodes and cells are typically produced in the same facility, the Cells, along with other components, are assembled into a complete LIB module or packs.
The actual selling prices may be driven by market factors other than manufacturing costs, especially in early stages of high-growth industries such as large format LIB cells. For example, due to the relative immaturity of large format LIBs, manufacturers may have initially rated the cells below their actual capacities in order to ensure products would meet or exceed their marketed specifications. This had the effect of increasing the marketed capacity normalized price ($/kWh). Additionally, global overcapacity of LIB cell production may have led manufacturers to price products below MSP.
The majority of automotive LIB cell production is currently located in Asia, and is owned by firms with extensive experience in producing LIB cells for consumer electronics markets. Such incumbent competitors leverage significant advantages when competing in the automotive market, which include robust supply chains and leverage over suppliers, strategic partnerships and more diversified sales channels, higher yields, and other advantages stemming from manufacturing learning effects. However, while Asian firms currently dominate the market, price competitive production may be possible from other countries.
eMpasys is a cutting edge Alternative/Renewable Technology Engineering company that was establish in 1998, we provide, design and develop various environmentally conscious solutions. eMpasys has a direct LIB module manufacturing facility located in China. www.empasys.net