Difference in production cost between the European Union and China for selected clean energy technologies by contributing factor, 2024

Notes

CAPEX = capital expenditure. Based on the levelised cost of production, which corresponds to the price that would have to be charged per unit of production to achieve a net present value of zero for a given investment. Batteries refer to battery cells using lithium nickel cobalt manganese oxide (NMC) 811 as cathode active material and graphite as anode active material. Labour cost for battery production in the European Union is calculated as the production weighted average of labour costs in 2024. Heat pumps refer to air-water units. Efficiency: production efficiency is directly proportional to automatisation of production processes and inversely proportional to scrap rates and manufacturing lines downtime.