Climate tech explained: grid-scale battery storage

The fast-growing battery industry is most associated with electric vehicles, but its growth is also being driven by energy storage on a wider scale. The market for this “grid-scale” storage — enough to power a town or city — more than doubled last year. And almost all of the growth came from lithium-ion batteries — the same as those used to power electric cars.

A further risk is that lithium-ion batteries rely on critical minerals that are expected to be in short supply by the end of the decade. However, that could be balanced out by the development of other storage technologies, such as sodium-ion batteries. In addition, the costs are currently still too high to make lithium-ion batteries economic for longer-term storage of energy, to cover periods when renewable energy is unavailable due to the weather.

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