Inflation and Supply Chain Issues Impact on Battery Prices
Battery prices today are impacted by many factors, including inflation and supply chain issues. Read more in this blog.
www.stryten.com
...The cost of sulfuric acid has risen over 60 percent in the past 12 months. While commonly used in the industrial sector, sulfuric acid is also important in the agricultural sector. The fertilizer industry accounted for more than 60 percent of total global consumption in 2020. The U.S. is the second-largest producer of sulfur, generating approximately 8.1 million metric tons annually. In “normal” times, there is plenty for both industries. Today, sulfuric acid is heavily in demand and harder to come by...
...Costs of metals have also increased significantly and impacted battery prices. In lead batteries, tin and antimony are commonly used for mechanical strength and to improve electrical properties........Lead is also in short supply, even though lead batteries are one of the most recycled consumer products. The shortage is primarily due to a deficit between recycling facility capacities and overall demand. U.S. battery manufacturers source about 73 percent of the needed lead from domestic lead battery recycling...
... Polypropylene is the second-most widely produced commodity plastic, used in manufacturing automotive components, packaging and labeling, medical devices, construction, and more. The lead battery industry utilizes poly resin in the casing and covers for automotive batteries. A number of factors have led to supply shortages of poly. As a petroleum-based product, supply is dependent on the oil industry. Shortages are primarily due to how that industry allocates resources...
...There are also higher non-material costs that impact battery prices. Diesel fuel costs are up almost 75 percent from last year, resulting in higher freight expenses. Utilities are also higher, which impacts the facilities. Rates are up about 30 to 40 percent, and those costs are also being passed along. Labor costs are also a factor...
...Additionally, as part of the 2021 Infrastructure Bill, Congress reinstated the chemical excise tax, which went into effect July 1, 2022. The tax would apply to chemicals and substances that are used in countless consumer goods containing steel, plastic, and wood and would also apply to everyday consumer products including batteries...
...The lead battery industry in North America is a model of the circular economy. The emphasis on recycling and reusing raw materials as much as possible reduces our impact on the environment. This closed-loop system also contributes to a strong domestic supply chain. Over 90 percent of domestic lead battery demand is met by North American manufacturing....
