The price of batteries is one of the key factors in the energy transition to an economy that needs to drastically reduce its greenhouse gas emissions. Their price, as technology has advanced and growing demand has brought new economies of scale for their manufacture, has shown a sharp decline over the past ten years, from US$1,200 per kWh in 2010 to just US$132 in 2021, according to BloombergNEF's recently released 2021 Battery Price Survey.

However, as we can see in the graph, the trend has already begun to flatten out and, what is more, Bloomberg forecasts that for the first time, the average price of batteries will be around US$3 per kWh higher in 2022 than in 2021, although measured in nominal dollars (in constant dollars it will fall marginally with respect to 2021, highlighting the weight of inflation). The main reason for this trend is the increase in the prices of raw materials from which batteries are made, such as lithium, nickel and cobalt.