The invention relates to the field of iron and steel smelting, in particular to a low-cost well-formed battery shell steel and a production method thereof. The low-cost well-formed battery shell steel is prepared from components in percentage by mass, 0.008%-0.02% of C, 0.1%-0.3% of Mn, smaller than or equal to 0.01% of Si, 0.050%-0.10% of Als, smaller than or equal to 0.015% of P, smaller than or equal to 0.0020% of S, smaller than or equal to 0.004% of N, smaller than or equal to 0.01% of Cu, smaller than or equal to 0.01% of Ti, smaller than or equal to 0.002% of T [O] and the balance of Fe and inevitable impurities, wherein T [O] is an oxidation inclusion; T [O] in steelmaking is the content of oxidation series inclusions, the deoxidation time can be shortened, the inclusions in steel are reduced, and a steel plate formed through follow-up punch forming has more excellent machining forming performance; the steel toughness is improved, the steel anisotropy is reduced, and the process is matched, so that the steel has good yield strength elongation and good forming performance.