How do you calculate CAM rework cost?

Multiply the reworkable mass by the variable rework cost per kg and by the percent of mass that actually needs rework, then add the fixed setup cost. For 100 kg at $45/kg with 80% needing rework plus $250 setup: 100 x 45 x 0.80 = $3,600, plus $250 = $3,850 total.

What is the effective rework cost per kg in this example?

$3,850 spread across the full 100 kg held is $38.50 per kg held. That per-kg-held figure is what you compare against the metal value you would lose by scrapping the lot.

When is it cheaper to scrap CAM than to rework it?

Scrap when the rework cost per kg held plus the second-pass failure risk exceeds the recoverable metal value net of any reclaim credit. If reworked NCM carries far more nickel and lithium value than the $38.50/kg rework cost, rework usually wins.

Why include a fixed setup cost?

Rework often needs a dedicated reactor cleanout, line changeover or re-calcination ramp regardless of batch size. The $250 fixed cost ensures a small 100 kg batch is not costed as if setup were free, raising effective per-kg cost to $38.50.

Does this account for yield loss during rework?

No. The calculator costs the rework activity but assumes the held mass is recovered. If a re-calcination pass loses 5-10% to fines or further off-spec, you should add that lost metal value separately.

What is a typical off-spec rate to enter?

It depends on process maturity; a well-controlled CAM line might hold 2-5% of lots, but a ramping or newly qualified line can see 20-40% needing rework, which is why the example uses 80% for a problem lot.

Cathode Active Material & Precursor Manufacturing calculator

Rework Cost Calculator

Rework cost quantifies what it actually costs to recover off-spec cathode active material or precursor instead of scrapping it. In CAM and pCAM plants, rework usually means re-screening, re-blending, de-agglomerating, re-calcining or washing material that failed on particle size distribution, residual lithium, moisture or trace-metal limits. Process and quality engineers use this number to decide whether recovery is cheaper than the embedded metal value lost to scrap, since a single tonne of high-nickel CAM carries thousands of dollars of nickel and lithium. The model combines a per-kilogram variable cost with a fixed setup charge so even small rework batches are costed honestly.

What this calculator does

Estimate the cost to rework off-spec CAM or precursor through re-milling, re-drying, re-calcination, blending, re-testing, or downgrade disposition.
Use it when rework cost in cathode active material and precursor manufacturing is being put through a cathode active material and precursor manufacturing weighted-cost review.
It computes the variable rework cost on the off-spec fraction of a held lot, then adds the fixed rework setup cost to give total rework cost and an effective cost per kilogram held.

Formula used

Variable rework cost subtotal = reworkable CAM or precursor mass × variable rework cost × mass requiring rework
Total CAM rework cost = variable rework cost subtotal + fixed rework setup cost

Inputs explained

Reworkable CAM or precursor mass:
Variable rework cost:
Mass requiring rework:
Fixed rework setup cost:

How to use the result

Use it when a lot is placed on quality hold and you are deciding between rework, downgrade or scrap, or when budgeting expected rework on a process with a known off-spec rate.
It assumes a single rework pass at a known cost; multi-pass rework, yield loss during rework, and the risk that reworked material fails a second time are not modeled and can materially raise the true cost.

Common questions

How do you calculate CAM rework cost? Multiply the reworkable mass by the variable rework cost per kg and by the percent of mass that actually needs rework, then add the fixed setup cost. For 100 kg at $45/kg with 80% needing rework plus $250 setup: 100 x 45 x 0.80 = $3,600, plus $250 = $3,850 total.
What is the effective rework cost per kg in this example? $3,850 spread across the full 100 kg held is $38.50 per kg held. That per-kg-held figure is what you compare against the metal value you would lose by scrapping the lot.
When is it cheaper to scrap CAM than to rework it? Scrap when the rework cost per kg held plus the second-pass failure risk exceeds the recoverable metal value net of any reclaim credit. If reworked NCM carries far more nickel and lithium value than the $38.50/kg rework cost, rework usually wins.
Why include a fixed setup cost? Rework often needs a dedicated reactor cleanout, line changeover or re-calcination ramp regardless of batch size. The $250 fixed cost ensures a small 100 kg batch is not costed as if setup were free, raising effective per-kg cost to $38.50.
Does this account for yield loss during rework? No. The calculator costs the rework activity but assumes the held mass is recovered. If a re-calcination pass loses 5-10% to fines or further off-spec, you should add that lost metal value separately.

Last reviewed 2026-05-12.