Intertek CEA says 587Ah cells could drive down BESS costs through 2027

From ESS News

Wider adoption of 587Ah battery cells is likely to reduce BESS costs despite a sharp increase in lithium carbonate prices, according to Intertek CEA’s first-quarter storage price forecast.

Cell-level energy density gains from the 587Ah format are modest on their own, at roughly 20%, said Intertek CEA.

But original equipment manufacturers designing BESS modules and racks around the new cell architecture are fitting the same number of cells into each module, producing a 60% to 80% increase in energy density at the module or rack level, the firm said. That reduces balance-of-system costs on a per-kilowatt-hour basis by cutting the number of components needed upstream of the module.

The cost math also favors the new cell format because lithium is not the dominant driver of BESS system costs, said Intertek CEA.

According to its modeling, LFP cells account for about 18% of total BESS system cost, and lithium carbonate contributes roughly 10% to 12% of that total – smaller than the combined savings available from reducing other upstream components.

Lithium carbonate prices have roughly tripled amid supply chain disruptions tied to sulfur imports and cathode active material shortages, the firm said, but the cost reduction from fewer components and higher module-level density can outweigh that increase.

Manufacturing cost declines from automation are slowing as improvements become more incremental, Intertek CEA said, though the firm does not see a hard floor on cost reductions. Continued gains from new anode formulations, ongoing manufacturing improvements, and eventual solid-state battery deployment are expected to keep driving costs lower even as automation gains taper off.

According to industry reporting, CATL began mass production and delivery of 587Ah cells in June 2025 and had shipped 2 GWh as of the reporting period, with 3 GWh projected by year-end.

The company separately signed an agreement in November 2025 to supply no less than 200 GWh of battery cells to HyperStrong between 2026 and 2028, though that agreement does not specify the 587Ah format. Other manufacturers, including Hithium and REPT Battero, have been associated with 587Ah or adjacent large-format cells in industry coverage, while EVE Energy has moved toward a 628Ah format.

CATL first began mass commercialization of its 587Ah cell in December 2025, as Chinese manufacturers accelerated a broader shift from 314Ah to 500Ah-plus LFP formats. Hithium introduced its own 587Ah cell alongside a 6.25 MWh storage system in 2025.