Battery storage growing at an unprecedented rate, but still not enough

Global growth in battery electricity storage was exceptional in 2023, but considerable expansion is needed to meet 2030 climate targets, according to the IEA.

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In 2023, the deployment of battery systems, particularly in conjunction with renewable energies such as solar and wind power, increased by 130% on the previous year, adding 42 gigawatts of capacity to the global grid. At the same time, the transport sector saw a 40% increase in battery use, with almost 14 million new electric vehicles sold.

Crucial importance of batteries for climate targets

Fatih Birol, Director of theIEA (International Energy Agency), points out that the power and transport sectors play a key role in reducing CO2 emissions. Batteries, whose cost has fallen by over 90% in less than fifteen years, are now essential to support this transition. They are becoming more competitive than coal-fired power plants in India, and will soon be more competitive than coal-fired power plants in China and gas-fired power plants in the USA.

Future requirements and necessary expansion

To meet the international commitments made at COP28, notably to triple the deployment of renewable energies by 2030, global battery storage capacity needs to be increased almost sixfold, to 1,500 GW. This increase would enable optimal use of intermittent renewable energies, storing the excess electricity produced for redistribution at times of peak demand.

Production and diversification challenges

While the majority of batteries are currently produced in China, it is crucial to diversify supply chains. Almost 40% of new battery manufacturing projects are planned in advanced economies such as the USA and Europe. If these projects come to fruition, they could almost entirely cover the needs of these regions, reducing dependence on a single source of production.

The massive expansion of battery storage required between now and 2030 is a crucial challenge for achieving global climate objectives. Progress in reducing costs and diversifying supply chains will be decisive in supporting the integration of renewable energies into the global energy grid.

Daiwa Energy & Infrastructure has launched a 38MW grid-scale battery system in Chitose, aiming for commissioning in 2027, as part of its deployment of high-voltage storage assets across Japan.
Menlo Digital has started construction on its MD-DC1 data centre in Herndon, marking a key step in its national development programme exceeding 1.8 GW.
Finnish energy company Vantaan Energia has selected Elisa Industriq’s Gridle service to operate its new energy storage system in Rekola, supporting national grid flexibility.
US-based Eos Energy will supply up to 750 MWh of zinc-based storage systems to MN8 Energy, targeting high-demand projects such as data centres and industrial facilities.
Eos Energy and Talen Energy partner to develop multiple energy storage projects in Pennsylvania to meet rising electricity demand driven by AI and cloud computing growth.
NEO Battery Materials will supply high energy density batteries to a South Korean industrial robotics company under a $2.5M CAD order and joint development agreement over two years.
US-based battery storage developer Bimergen Energy has appointed Cole Johnson and Robert Brilon as co-CEOs to execute a large-scale industrial plan backed by $250 mn in recent funding.
Trina Storage has introduced its new Elementa 3 energy storage system, engineered for the Gulf’s extreme conditions and aimed at boosting energy density while lowering operating costs.
Japanese company Sun Village has connected its first energy storage facility to the grid and formalised a strategic partnership with Marubeni Power Retail to operate the asset on electricity markets.
Lightshift Energy has secured $75mn in funding from KeyBanc to support six operational projects and launch ten more, in response to rising demand for electric storage on the US East Coast.
Austrian battery optimisation specialist enspired enters Japan in partnership with Banpu NEXT, backed by a Series B extension to over €40mn.
Ameresco has completed a 50 MW battery storage system to support Nucor’s expansion in Arizona, marking one of the largest behind-the-meter industrial projects in the United States.
Rondo Energy has launched commercial operations of the world’s largest industrial heat battery, delivering 24-hour steam from off-grid solar power.
SUNOTEC expands in the Bulgarian market with seven projects combining battery and solar, totalling 763 MWh of storage and 115 MWp of photovoltaic capacity.
Danish fund Copenhagen Infrastructure IV transfers half of its stake in the UK-based Coalburn 2 project to AIP Management, strengthening AIP's energy storage portfolio in the United Kingdom.
Lyten has completed the acquisition of the Northvolt Dwa site in Poland, Europe’s largest energy storage system factory, and plans to deliver its first commercial units before the end of 2025.
SNG Holdings launched trial operations of a 2MW/6MWh energy storage facility in Gotemba, backed by Digital Grid and PHOTON, ahead of commercial commissioning scheduled for November.
The Winchester project will combine 160 MW of storage with two 80 MW solar plants in Cochise County, with delivery expected in early 2027.
Greenflash Infrastructure has acquired a 200 MW standalone storage project in Texas, marking a strategic asset transfer aimed at reinforcing local grid reliability.
Gotion High-Tech presented in Saudi Arabia a modular 20 MWh storage solution aimed at strengthening the country's energy capacity under its Vision 2030 strategy.

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