Critical Minerals and Energy Intelligence

Global Energy Storage Set to Grow 20-Fold by 2030

We covered residential battery storage last month but how about the bigger picture? According to a recent forecast from BloombergNEF, total energy storage installations are expected to hit 358 gigawatts (1,028 gigawatt-hours) by the end of 2030. For some context, that’s more than 20 times the capacity at the end of 2020.

To make that leap, the industry is going to need over $260 billion invested. The U.S. and China are the front runners. In the U.S., it’s being drive at a state level while in China the story is, as normal, national targets. Honorable mentions go to India, Australia, Germany, the U.K., and Japan. All of them seem to be making big moves on climate but we’ll see if the governments step up with the necessary funds.

From the report, more than half of all new storage by 2030 will be built to move energy – such as solar power stored during the day and used at night. Another trend expected to ramp up further is combining renewables and storage on the same site, like solar-plus-battery projects.

Battery technology is evolving fast. While several types of lithium-ion chemistries are being used, lithium-iron-phosphate (LFP) is getting a lot of play in China. In fact, 2021 marked the first year that LFP outpaced the more expensive nickel-manganese-cobalt (NMC) batteries for stationary storage. BloombergNEF predicts that trend will continue going forward. Other technologies such as compressed air and thermal storage are also being developed, but for now, batteries are expected to dominate due to falling costs, performance, and the major upside that the supply chain is already well established.

Anthony Milewski

Chairman, Nickel 28 Capital

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