The US Has a Chance to Rival China in Rush for Longer-Lasting Batteries

Why It Matters

Long‑duration storage is critical for deep decarbonization and grid reliability, and gaining market share could secure a domestic supply chain and new revenue streams for U.S. firms.

Key Takeaways

• US holds second‑largest long‑duration storage market, behind China.
• Long‑duration storage capacity could quadruple this year after 2025 record.
• Form Energy secured data‑center deals for 100‑hour iron‑air batteries.
• US and Europe diversify technologies, while China focuses on narrow set.
• Policy incentives in UK, Italy, California boost domestic long‑duration projects.

Pulse Analysis

The surge in renewable generation has exposed a fundamental weakness in power grids: the inability to store electricity for extended periods. Long‑duration energy storage (LDES) – capable of delivering power for 10 to 100 hours or more – is emerging as the missing link that enables deep decarbonization, mitigates weather‑related supply shocks, and reduces reliance on natural‑gas peaker plants. Analysts at BloombergNEF expect global LDES deployments to almost quadruple this year, driven by record installations in 2025 and a growing appetite from data‑center operators seeking reliable, carbon‑free backup.

China currently dominates the LDES landscape, commanding roughly 72% of cumulative capacity and leveraging its scale in lithium‑ion production. However, its focus remains on a narrow set of technologies, limiting export potential. In contrast, U.S. and European firms are pursuing a broader portfolio that includes iron‑air, compressed‑air, gravity‑based, and vanadium‑flow systems. Companies such as Form Energy, with its 100‑hour iron‑air batteries, and Hydrostor, developing large‑scale compressed‑air projects in California, illustrate how diversified approaches can capture niche markets and tailor solutions to local grid conditions. This technological heterogeneity gives the U.S. a strategic advantage in meeting varied regulatory and site‑specific requirements.

Policy momentum is accelerating the transition. The United Kingdom and Italy have introduced incentives to spur LDES adoption, while California’s ambitious energy storage targets are backing one of the world’s largest compressed‑air facilities. Federal interest in bolstering domestic supply chains further reduces reliance on Chinese components. As utilities and data‑center developers prioritize resilience and carbon‑free reliability, investment in LDES is expected to flow, creating a fertile environment for startups and established manufacturers alike. The convergence of market demand, diversified technology, and supportive policy positions the United States to challenge China’s lead and shape the future of long‑duration storage.