New battery plants scrap 15% to 30% of what they make, mature plants scrap about 10%

A joint white paper from Fraunhofer FFB and RWTH Aachen states each percentage point of that waste costs a modeled battery plant 30,000 euros a day, and a rival battery company chief executive says scrap above 50% helped end Northvolt, a European battery maker.

15% to 30%1scrap rate common in the first years of battery cell production, per a joint Fraunhofer FFB and RWTH Aachen white paper
about 10%1scrap rate still typical at a battery plant even after 5 years of operation
900,000 euros1cost each day to a modeled battery plant running at a 30% scrap rate

What scrap rate measures, and how high it runs

A battery cell factory does not turn every batch of material it starts into a battery that can be sold. The share that never becomes a sellable cell is called the scrap rate. A joint white paper from Fraunhofer FFB, a public battery research institute in Germany, and RWTH Aachen, a university engineering department, states that a scrap rate of 15% to 30% is common in the first years of battery cell production, and that even after 5 years of running, a plant still typically scraps about 10% of what it attempts to make. The white paper states this pattern applies not only to European startup battery plants but also to established Asian cell manufacturers that build factories in Europe copied closely from their own designs in Asia. The same white paper compiles scrap rate ranges from 5 earlier, separately published studies, and those ranges vary even more, from as low as 4.0% up to 30.0%.

Scrap rate ranges reported by 5 earlier studies, compiled by Fraunhofer FFB and RWTH AachenLow end of the reported rangeSpan up to the high end
Schunemann, 20154.0% to 15.3%Hanisch and coauthors, 20155.9% to 15.2%Kehrer and coauthors, 20215.1% to 19.1%Arthur D Little, 202210.0% to 30.0%Gaines and coauthors, 20235.0% to 30.0%0102030percent scrap rate

Compiled by the same Fraunhofer FFB and RWTH Aachen white paper that the central figures in this article come from, from 5 separately published studies with no common time period stated.

Source 1.

Show the numbers
Schunemann, 20154.0% to 15.3%
Hanisch and coauthors, 20155.9% to 15.2%
Kehrer and coauthors, 20215.1% to 19.1%
Arthur D Little, 202210.0% to 30.0%
Gaines and coauthors, 20235.0% to 30.0%

What the waste costs, in money and in time

The white paper prices the gap. For a modeled battery plant making 40 gigawatt hours of cells a year in Germany, it states, each percentage point of scrap rate costs about 30,000 euros a day, so a plant running at a 30% scrap rate loses about 900,000 euros a day once it reaches full production. A new battery plant also typically takes 3 to 9 months longer to start production than planned, with an average delay of 7 or more months, and each day of that delay costs the same modeled plant about 1,100,000 euros in lost profit, the white paper states.

Cost in euros a day to a modeled battery plant, by cause
Each percentage point of scrap rate, every day30,000A scrap rate of 30%, every day900,000One day of delay before production starts1,100,00003000006000009000001200000euros a day

These are the modeled numbers the white paper gives for a 40 gigawatt hour a year battery plant making NMC811 cells in Germany, with scrap sold at 70% of the price of a full cell.

Source 1.

Show the numbers
Each percentage point of scrap rate, every day30,000
A scrap rate of 30%, every day900,000
One day of delay before production starts1,100,000

When scrap gets high enough to end a company

At some new battery plants, scrap runs far higher than the typical range. Bob Galyen, national distinguished expert and chairman emeritus of NAATBatt International, a battery industry association in the United States, said on a panel that most startup battery plants scrap 30% or higher of what they make, against 6% to 7% at an established plant already meeting full manufacturing standards. Independent, peer reviewed researchers give an even wider range, from under 5% to as high as 90% during the early period after a plant starts running, an industry term for that period is ramp up. Thin profit margins, often only 2% to 3% at a battery cell factory, leave little room to absorb scrap that high, the same researchers state. Nemanja Mikac, chief executive of ElevenEs, a battery company in Serbia, spoke about Northvolt, a European battery maker that later failed.

Sometimes the scrap was over 50%, which isn't sustainable.

Nemanja Mikac, chief executive, ElevenEs. Source 4.

The first year or two, it's hard to make money.

Bob Galyen, national distinguished expert and chairman emeritus, NAATBatt International. Source 5.

A different number, not to be confused with scrap

Car makers hold a qualified cell supplier to a separate, stricter number once a battery has already been accepted, less than 10 defective cells in 1,000,000. That is a quality target on finished product a car maker has already agreed to buy, not a measure of what a plant throws away while making cells in the first place.

Sources

  1. Mastering Ramp Up of Battery Production. Christian Dahmen, Florian Degen, Markus Eckstein, Kevin Pouls and Hendrik Walter, Fraunhofer Research Institution for Battery Cell Production FFB, with Robert Ludwigs and Artur Scheibe, RWTH Aachen University. Published 2024-10-16. Accessed 2026-09-01.
  2. Challenges and opportunities for high quality battery production at scale. Peter M Attia, Eric Moch and Patrick K Herring, Glimpse, Nature Communications. Published 2025-01-12. Accessed 2026-09-01.
  3. A non academic perspective on the future of lithium based batteries. James T Frith, Volta Energy Technologies, Matthew J Lacey, Scania CV AB, and Ulderico Ulissi, Sphere Energy SAS, Nature Communications. Published 2023-01-26. Accessed 2026-09-01.
  4. Over 50% scrap is not sustainable, European battery industry looks to learn from mistakes of the past. Cameron Murray, Energy Storage News. Published 2025-05-22. Accessed 2026-09-01.
  5. Getting EV Battery Gigafactories Up to Speed. Bill Visnic, Tech Briefs. Published 2023-09-13. Accessed 2026-09-01.

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