The global adoption of utility-scale battery storage is experiencing significant growth, driven largely by the increasing integration of renewable energy sources. Battery storage systems are now crucial for maintaining a stable and reliable energy supply from intermittent sources like wind and solar power, ensuring consistent electricity delivery during both daylight and nighttime hours. A key factor in this expansion has been the dramatic reduction in the cost of lithium-ion batteries, allowing utilities worldwide to invest heavily in storage capacity. Over the past 15 years, battery costs have fallen by approximately 90 percent due to expanding commercial production, particularly in China. Currently, China dominates global battery production, although several other regions – including Europe, India, and the United States – are actively developing their domestic manufacturing capabilities.
Predictions indicate that worldwide energy storage additions will break records again in 2025, with a projected increase of 23 percent, reaching 92 gigawatts (GW) of capacity. This substantial growth is predominantly fueled by China, which is expected to contribute over 50 percent of the increase, while the United States is anticipated to account for roughly 14 percent. The robust U.S. contribution is particularly noteworthy considering the challenges faced by the wind and solar energy industries during the previous administration. BloombergNEF forecasts a cumulative energy storage capacity of 2 terawatts by 2035, representing eight times the level expected in 2025.
However, the rollout of battery storage in the United States has encountered mixed results. Despite the rapid growth of renewable energy, implementation has been hampered by resistance from some utilities and a degree of caution from policymakers, often citing safety concerns. Local governments have even taken proactive steps in a few instances, imposing bans on large-scale battery installations due to fears surrounding safety. For comparison, the pace of renewable energy expansion has consistently outstripped the deployment of battery storage in certain Southeast regions.
A notable exception is California, where stringent policies regarding peak demand reduction previously prompted residents to curtail their power usage during peak hours. As a result, California’s battery storage capacity has increased approximately 30 times since 2018, contributing significantly to enhanced grid stability. California, Texas, and Arizona account for roughly 80 percent of the entire U.S. battery storage capacity. Presently, across the United States, storage capacity substantially exceeds the number of gas power plants awaiting grid integration by a factor of 6.5, according to data compiled by the Lawrence Berkeley National Laboratory.
Several U.S. energy companies have been strategically investing in battery storage systems for several years, anticipating future demand across diverse regions. For example, Eolian “began developing projects around major metropolitan areas in the western U.S. starting in 2016 and placing project queues in that then became operational in 2025,” as stated by the company’s CEO, Aaron Zubaty. One such project is a 200-megawatt (MW) coastal battery site situated at a substation in Portland, Oregon. This kind of investment, alongside other initiatives, has enabled the U.S. to achieve its goal of 35 GW of battery storage capacity by 2025, despite earlier skepticism.
Beyond the United States, battery storage capacity is expanding rapidly in various global markets as governments and energy companies recognize the benefits of bolstering renewable energy reliability. In Mexico, experts predict a significant expansion of battery storage capacity in the coming years, likely peaking between 2027 and 2029, driven by regulatory updates, rapid renewable energy growth, and the maturation of storage technologies. Skysense, operating around 200 megawatt hour (MWh) of storage capacity, expects to roll out an additional 300 MWh by 2026. "It’s a very open government that is genuinely listening to the private sector," explained CEO Enrique Garduño. "We are buying, installing and selling storage systems at less than half the price of three or four years ago." Skysense has partnered with China’s BYD Energy Storage to expand its capacity, leveraging BYD’s “MC Cube-T BESS” platform. Oscar Su, BYD’s North America Vice President of Sales, stated, “Expanding into a high-potential region such as Latin America is a key step for us… We bring nearly 30 years of battery R&D and the world’s largest power battery production capacity.”
Meanwhile, India’s battery storage sector is generating considerable optimism, though attracting investment remains a key challenge. The South Asian country has seen record-low bids for its battery storage systems, potentially hindered by economic viability concerns and safety risks. India aims to double its renewable energy capacity to 500 GW by 2030, but without a corresponding increase in battery storage capacity, it will continue to rely heavily on fossil fuels.
The global surge in battery storage deployment reflects a broader trend as governments and energy companies invest in expanding capacity to support the transition to a green energy future. However, some regions are lagging behind, which could potentially slow the shift away from fossil fuels unless more significant investment is made in the sector.