The market prospects of energy storage battery packs

Are batteries the future of energy storage?

Developments in batteries and other energy storage technology have accelerated to a seemingly head-spinning pace recently — even for the scientists, investors, and business leaders at the forefront of the industry. After all, just two decades ago, batteries were widely believed to be destined for use only in small objects like laptops and watches.

Why is the EU's Strategic Action Plan on batteries important?

These innovations are critical as they provide diversified options for energy storage, reducing dependency on any single technology or material. In Europe, the EU's Strategic Action Plan on Batteries is promoting the development of innovative, non-lithium technologies to ensure Europe remains a leader in the global battery market.

How is the global battery market advancing?

The global battery market is advancing rapidly as demand rises sharply and prices continue to decline. In 2024, as electric car sales rose by 25% to 17 million, annual battery demand surpassed 1 terawatt-hour (TWh) – a historic milestone.

How much does a battery energy storage system cost?

The average installed cost of battery energy storage systems designed to provide maximum power output over a 4-hour period is projected to decline further, from a global average of around USD 285/kWh in 2021 to USD 185/kWh in the STEPS and APS and USD 180/kWh in the NZE Scenario by 2030.

What is Europe's Strategic Action Plan on batteries?

In Europe, the EU's Strategic Action Plan on Batteries is promoting the development of innovative, non-lithium technologies to ensure Europe remains a leader in the global battery market. By diversifying energy storage technologies, the EU is safeguarding against supply chain risks and promoting more sustainable solutions.

Will battery storage grow in 2025?

In the United States, the 2022 introduction of the Inflation Reduction Act included an investment tax credit for stand-alone storage. Since then we have seen huge growth in the sector in the US, and we expect to see this to continue into 2025, with several large-scale battery storage projects set to complete in 2025.