Battery cathode materials: Feedstocks
Why lithium alone is roughly half the cost of LFP
What this tab covers What it is made from and what it feeds: the raw materials and energy per tonne with their share of cost (linked to the commodity table), who is low-cost and why, and the chemicals made from it.Cathode cost is mostly metal. LFP is about lithium carbonate, iron and purified phosphoric acid; ternary is about nickel, cobalt and lithium hydroxide. Who wins depends on access to refined battery-grade salts, which China dominates: about 60% of lithium, 74% of nickel and 61% of cobalt refining (IEEFA 2026). Indonesia's nickel parks and Congolese cobalt feed Chinese precursor plants.
Inputs per tonne
| Input | Quantity per tonne | Role | Share of cost | Source |
|---|---|---|---|---|
| Li Lithium | about 0.24 t Li2CO3 per t LFP; about 0.43 t LiOH.H2O per t NMC811 | lithium source | about half of LFP cost at 2025 prices (indicative) | stoichiometry; lithium tile (USGS, Fastmarkets) |
| Ni Nickel | about 0.48 t Ni per t NMC811 | energy-carrying transition metal | largest single cost in high-nickel grades (indicative) | stoichiometry; nickel tile |
| Co Cobalt | about 0.06 t Co per t NMC811; about 0.6 t per t LCO | structural stability | rose sharply in 2025-26 as cobalt rose from $10.75 to $24.75/lb | stoichiometry; cobalt tile (Cobalt Institute) |
| Mn Manganese | about 0.056 t Mn per t NMC811; more in LMFP and LMO | stability, cost reduction | small (indicative) | stoichiometry |
| P Phosphate rock | about 0.2 t P per t LFP | phosphate framework | rose 10-40% at the start of 2026 (GGII) | stoichiometry; GGII (Feb 2026) |
| Fe Iron ore | about 0.35 t Fe per t LFP | redox metal in LFP | small; ferrous sulphate prices roughly doubled into 2026 (GGII) | stoichiometry; GGII (Feb 2026) |
| Electricity and nitrogen/oxygen for kilns | not published | calcination atmosphere and heat | not published | not published |
Who is low-cost, and why
Low-cost producers are large Chinese LFP plants integrated into lithium and phosphate (Yuneng, Wanrun) and ternary makers tied to Indonesian nickel (Huayou). Korean and European plants pay more for power, labour and capital and depend on imported precursor.