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Assertion: The cost of American-made electrolyzers will decline as production increases

The cost of American-made electrolyzers will likely decline as production increases due to economies of scale, technological advancements, and increased competition. As production ramps up, manufacturers can spread fixed costs over a larger number of units, reducing the per-unit cost. Additionally, with more experience and investment in research and development, companies will improve the efficiency and performance of electrolyzers, further driving down costs. Increased production also attracts more suppliers and encourages competitive pricing, lowering the cost of raw materials and components. Collectively, these factors contribute to a downward trend in the cost of American-made electrolyzers, making them more affordable and accessible for widespread adoption in various industries.1

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Footnotes​

  1. Parkes, R. (2024, March 4). Cost of electrolysers for green hydrogen production is rising instead of falling: BNEF. Hydrogen Insight. https://www.hydrogeninsight.com/electrolysers/cost-of-electrolysers-for-green-hydrogen-production-is-rising-instead-of-falling-bnef/2-1-1607220 ; Mayyas, A. Ruth, M. Pivovar, B. Bender, G. & Wipke, K. (2018). Manufacturing Cost Analysis for Proton Exchange Membrane Water Electrolyzers. National Renewable Energy Laboratory. ↩