REMaterials
BESS Cost Model

What's Inside a Battery Pack?

Explore the components, materials, and manufacturing costs of a lithium-ion battery energy storage system. From cathode chemistry to pack-level thermal management — every layer that determines $/kWh.

~$64/kWh (LFP pack, 2025)
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Click a component to explore

Click any component on the left to see its material composition, cost contribution, and engineering details.

Supply Chain: From Mine to Megapack

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Mining & Refining

Lithium from brine (Chile, Argentina) or spodumene (Australia). Nickel/cobalt from laterite ores (Indonesia, DRC). Graphite from mines (China, Mozambique).

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Cathode Production$15/kWh

Precursor materials are mixed, calcined at 700-900°C, then milled to 5-15μm particles. LFP requires carbon coating for conductivity. NMC requires precise Ni:Mn:Co ratios.

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Electrode Manufacturing$4/kWh

Active material, binder, and conductive additive are mixed into slurry, coated onto metal foils (Al for cathode, Cu for anode), dried, and calendered to target porosity.

Cell Assembly$8.5/kWh

Electrodes are stacked or wound with separator, inserted into cans, filled with electrolyte under vacuum, then sealed. Formation cycling (first charge) activates the SEI layer.

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Pack Assembly$25/kWh

Cells are connected in series/parallel, BMS boards installed, thermal management plumbed, and everything housed in a fire-rated steel enclosure with HVAC and fire suppression.

Total Pack Cost (LFP)
~$64/kWhBatPaC v5.0, 2025

LFP vs NMC811: Which Chemistry?

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LFP (Lithium Iron Phosphate)

Pack cost~$64/kWh
Energy density160 Wh/kg (cell)
Cycle life4,000-6,000 cycles
Thermal runaway270°C (very safe)
Critical mineralsNo Co, No Ni

Dominant for utility-scale BESS. Lower cost, longer life, safer. Preferred by Tesla Megapack, BYD, CATL.

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NMC811 (Nickel Manganese Cobalt)

Pack cost~$92/kWh
Energy density250 Wh/kg (cell)
Cycle life1,500-3,000 cycles
Thermal runaway210°C (less safe)
Critical mineralsNi 75%, Co 9%

Used where space/weight matters (EVs, behind-the-meter). Higher energy density but shorter life and supply chain risk.