Battery costs

It is well known that the cost of batteries has been declining for the last couple of decades. Given that, I find the following graph puzzling:

From the St. Louis Fed, it shows the producer price index for battery manufacturing. This industry PPI has gone from 100 in 2004 up to 150 for the 2012-16 period. It is currently at 187. To overcome these increases there must be some strong increases in manufacturing efficiencies.


They do tell us that lithium prices are sky rocketing.

Suppliers seem to be expanding everywhere. And new ventures are planned.

One would hope that supply catches up with demand and prices stabilize. New ventures probably take two or three years to begin production.

Maybe we will see changes by 2025.

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