SP & PT versions under construction
Short-Term Energy Storage
The most scalable type of grid-scale storage
Technology usually advances at the rate of demand. Experts believe Li-ion batteries (LiB) may have reached their limit, fueling the race to techs w/ higher energy densities [1]. As usual, manufacturers are struggling to increase energy capacity w/o increasing batt weight & cost [2].
Even in this decade Sodium-ion batteries (SIB) & Solid-state batteries (SSB) should reach the market. SIB will be safer & cheaper than LiB, but with lower densities. SSB have been described as the “next big thing” for electric vehicles (EVs) battery mfrs due to its potential to more than double (~2.5x higher) the energy density of a standard LiB in a (much more) safe way, being the focus of innovation & patents [3].
Chine vs ROW
Currently, China was an early adopter of battery technologies, but it was not the only one. In 2018, battery manufacturing technologies in the U.S. & China were at a similar level, according to IEA analysis. Japan & South Korea were also competitive, while Europe was farther behind. Since then, however, the Chinese battery industry has expanded its position. By 2024, more than six times as many batteries had been produced in China than in the U.S. [IEA, 2026].
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Battery Scale & Costs
Utility-scale battery power capacity has grown rapidly, becoming a key source of short-term grid flexibility and increasingly supporting overall energy security. Growth has been particularly strong in regions with rapidly rising shares of solar & wind in electricity generation. Overall, 2024 capacity reached more than 12 times the 2020 level, according to the IEA [Figure 1].​​​
Figure 1: Battery production is acelerating as costs falls
Source: IEA, 2026
Li-ion batteries (LiB)
Currently, Li-ion batteries (LiBs) are by far the global leaders in electrochemical energy storage. They are mainly comprised of three key components: the cathode, the most expensive & performance-defining element, which determines the battery chemistry, anode, and the electrolyte, LiB makers are actively seeking technological innovations & breakthroughs in various of these parts. Though revolutionary & ubiquitous, LiB has some drawbacks such as safe, recharge time, and materials supply chain issues, which leads to a high mfg. cost [4].
Sodium-ion batteries (SiB)
Sodium-ion (SiB) technology, now commercially available, is a promising option to mitigate battery supply chain risks. SiBs are safer, cheaper, and cleaner than Li-ion batteries (LiB), though they have lower energy density (about two-thirds). Already in commercial production (w/ CATL & BYD already mfg them at industrial scale), they can effectively complement Li-ion batteries across a wide range of applications, w/ particular relevance for grid-scale and behind-the-meter BESS [5].
While structurally similar to Li-ion batt (with the anode being the main differentiating component), SiB are potentially more environmentally friendly, as they rely primarily on abundant sodium resources, notably sodium chloride derived from seawater. Unlike LiB, they are not reliant on nickel, cobalt, and manganese, and instead use widely-available materials. For additional information on SiB, click here.
Solid-state batteries (SSB)
Developments in the late 20th and early 21st century have caused renewed interest in SSB tech, especially for EVs, from the 2010s onwards [6]. As time goes by, R&D could continuously reduce liquid content in battery electrolytes, but there remain critical technical challenges on the way to all-solid-state batteries: currently, industry is transiting from semi-solid (liquid: 5-10 wt%) to all-solid-state.
SSB use solid electrodes (like LiB) and a solid-electrolyte (SE), doing away w/ liquid or polymer gel electrolytes found in conventional Li-ion or Li-polymer batteries [7]. Commercial SSB are already a reality, but in smaller devices such as smartwatches, pacemakers, and RFID tags. It can provide potential solutions for many problems of liquid LiB, such as flammability, limited voltage, and poor cycling [8]. Cars equipped w/ SSB could be lighter, which increases range, and can take a third as long to recharge [9].