Energy Storage Enters the 100-Gigawatt Era: Three Things to Know

Why It Matters

The surge reshapes grid‑balancing economics, accelerates renewable integration, and signals a strategic shift toward diversified battery chemistries that could lower costs and reduce supply‑chain risk.

Key Takeaways

• 112 GW added in 2025, 48% YoY increase.
• China supplied 54% of storage additions, U.S. 16%.
• Non‑lithium batteries expected to power 2 GW long‑duration storage in 2026.
• Sodium‑ion supply deals total ~65 GWh signed for 2025‑2030.
• Energy‑storage growth now outpaces solar and wind capacity additions.

Pulse Analysis

The global energy‑storage market crossed the 100‑gigawatt threshold in 2025, adding a record 112 GW of battery capacity—up 48 % from the previous year. That acceleration dwarfs the historical growth curves of wind and solar, which required eight and fifteen years respectively to reach comparable annual capacity. China remains the engine of this surge, accounting for more than half of new installations, while the United States contributed 16 % and Australia saw a six‑fold jump thanks to supportive subsidies. The rapid scaling signals a maturing industry ready to support deeper renewable penetration.

Geopolitical turbulence, notably the Iran‑Saudi conflict, has so far left the storage supply chain largely untouched because Chinese manufacturers dominate battery production. However, higher fossil‑fuel prices are widening intraday electricity spreads, improving the revenue outlook for storage assets in competitive markets. If retail electricity rates climb, businesses and homeowners may accelerate adoption of rooftop solar paired with batteries, mirroring trends observed in Europe after the Ukraine war. At the same time, elevated oil prices could lift shipping and equipment costs, adding a regional cost headwind for project developers.

Beyond lithium‑ion, the sector is poised for a chemistry shift. Long‑duration storage—systems delivering six hours or more—should quadruple to 2 GW in 2026, driven largely by non‑lithium technologies. Sodium‑ion batteries, still costlier, are gaining traction through large‑scale agreements such as CATL’s 60 GWh partnership and Peak Energy’s 5 GWh contract, together representing roughly 65 GWh of future capacity. As material abundance and economies of scale improve, sodium‑ion could erode lithium’s dominance, offering developers a broader toolkit to meet grid‑balancing needs through 2036 and beyond.