From minerals to dollars: A scrutiny of lithium-ion battery cost models

The accelerating growth of electric mobility and stationary storage has intensified demand for lithium-ion batteries, where raw materials represent 50–70% of total cost. Volatility in Ni, Co and Li markets therefore poses major risks for affordability and investment decisions. This study systematically evaluates existing battery-cost models with a specific focus on how raw-material price inputs are represented, standardized and propagated into final $/kWh outputs. A comparative review of sixteen representative models, including BatPaC, GREET®, EverBatt and CellEST, investigates methodological assumptions, cost-element structure, and transparency of data sources. This work provides the first review that jointly analyses deterministic cost models alongside probabilistic validation using real-world commodity volatility. Robustness is assessed through a 1,000-run Monte Carlo simulation based on historical price distributions of key metals. Results indicate clear differentiation among chemistries. NMC-111 exhibits the widest 5–95% uncertainty range due to cobalt sensitivity, whereas NMC-811 and NMC-9525 show narrower bands reflecting reduced cobalt exposure. Bottom-up process-based models offer stronger cost traceability and better uncertainty representation than top-down macro forecasts, which often lack explicit linkages to $/kWh outputs. Findings demonstrate that raw-material price treatment strongly influences forecast accuracy, and that scenario-free point estimates systematically under-represent market risk. To address these gaps, the study proposes a structured multi-source data acquisition strategy integrating public databases, commodity-market feeds and industry publications. The review enhances transparency, establishes reproducible comparison criteria, and quantifies price-volatility effects, offering actionable guidance for researchers, analysts and policymakers aiming to improve reliability and reduce uncertainty in LIB cost assessment.

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Publication Details

Journal
Sustainable Futures
Published
2026-03-02
DOI
https://doi.org/10.1016/j.sftr.2026.101767
Primary Topic
Extraction and Separation Processes
Type
article
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article

From minerals to dollars: A scrutiny of lithium-ion battery cost models

Hüseyin Ersoy, Viera Pechancová, Anna Ivanichenko, Lucie Hrbáčková et al.
Sustainable Futures
Extraction and Separation Processes
article

From minerals to dollars: A scrutiny of lithium-ion battery cost models

Hüseyin Ersoy, Viera Pechancová, Anna Ivanichenko, Lucie Hrbáčková, Drahomíra Pavelková, Debashri Paul, Jens Buchgeister, Manish Kumar, Manuel Baumann
article en

Abstract

The accelerating growth of electric mobility and stationary storage has intensified demand for lithium-ion batteries, where raw materials represent 50–70% of total cost. Volatility in Ni, Co and Li markets therefore poses major risks for affordability and investment decisions. This study systematically evaluates existing battery-cost models with a specific focus on how raw-material price inputs are represented, standardized and propagated into final $/kWh outputs. A comparative review of sixteen representative models, including BatPaC, GREET®, EverBatt and CellEST, investigates methodological assumptions, cost-element structure, and transparency of data sources. This work provides the first review that jointly analyses deterministic cost models alongside probabilistic validation using real-world commodity volatility. Robustness is assessed through a 1,000-run Monte Carlo simulation based on historical price distributions of key metals. Results indicate clear differentiation among chemistries. NMC-111 exhibits the widest 5–95% uncertainty range due to cobalt sensitivity, whereas NMC-811 and NMC-9525 show narrower bands reflecting reduced cobalt exposure. Bottom-up process-based models offer stronger cost traceability and better uncertainty representation than top-down macro forecasts, which often lack explicit linkages to $/kWh outputs. Findings demonstrate that raw-material price treatment strongly influences forecast accuracy, and that scenario-free point estimates systematically under-represent market risk. To address these gaps, the study proposes a structured multi-source data acquisition strategy integrating public databases, commodity-market feeds and industry publications. The review enhances transparency, establishes reproducible comparison criteria, and quantifies price-volatility effects, offering actionable guidance for researchers, analysts and policymakers aiming to improve reliability and reduce uncertainty in LIB cost assessment.

Sustainable FuturesVol. 11
Karlsruhe Institute of Technology (DE), Tomas Bata University in Zlín (CZ), Helmholtz-Institute Ulm (DE)
Openalex Percentile: Top 39%
Extraction and Separation Processes
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