SP & PT versions under construction
Short-Term Energy Storage
The most scalable type of grid-scale storage
Technology usually advances in response to demand. Li-ion batteries (LiBs) continue to dominate electrochemical energy storage, but their rapid evolution has also fueled the race toward technologies with higher energy density, lower cost and improved safety [1]. Battery manufacturers are continuously seeking to increase energy density without increasing battery weight, degradation, complexity & cost [2].
Sodium-ion batteries (SIBs) and solid-state batteries (SSBs) are emerging as important next-generation technologies. SIBs can offer potential cost, safety and supply-chain advantages over LiBs, although their energy density is generally lower. SSBs are being developed primarily for EVs because of their potential for higher energy density, improved safety and faster charging. However, commercial-scale deployment remains at an early stage, and Li-ion technology continues to advance rapidly [3].
Chine vs ROW
China was an early adopter of battery technologies, but it was not the only one. In 2018, battery manufacturing capabilities in the U.S. and China were at a similar level, according to IEA analysis. Japan and South Korea were also competitive, while Europe was farther behind. Since then, however, China has dramatically expanded its position in the global battery industry. By 2024, China had produced more than 6x as many EV batteries cumulatively as the U.S., while Chinese battery packs were also more than 20% cheaper than those 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. By 2024, global utility-scale battery power capacity was more than 12x its 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 dominant technology in electrochemical energy storage. They comprise four key components: the cathode, the most expensive and performance-defining component that largely determines the battery chemistry; the anode; the electrolyte, which enables the movement of lithium ions between the electrodes; and the separator, which prevents direct contact between the electrodes.
LiB manufacturers are actively pursuing innovations across these components to improve energy density, charging performance, durability, safety and cost. Despite their technological maturity and widespread deployment, LiBs still face challenges related to safety, charging time, degradation and the supply of critical materials [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.
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 [5]. 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 [6]. 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 [7]. Cars equipped w/ SSB could be lighter, which increases range, and can take a third as long to recharge [8].