Battelle Memorial Institute, under a 5-year cooperative agreement with the U.S. Department of Energy’s (DOE’s) Fuel Cell Program, is providing an independent assessment of fuel cell manufacturing costs at various volumes and for alternative system designs. This report provides cost estimates for the production of 1, 5, 10, and 25 kW polymer electrolyte membrane (PEM) fuel cell systems designed for material handling applications. This report identifies the manufacturing costs of fuel cells using appropriate manufacturing processes at annual production volumes of 100, 1000, 10,000, and 50,000 units.