Energy Storage Lithium-Ion Batteries Face Strategic Opportunities — Latest Market Trends and Prospects for 2025

I. Global Energy Transition Drives Rapid Development of the Energy Storage Industry

As the world enters a new round of energy revolution, energy storage, as a key enabler for clean energy grid integration and energy structure transformation, is experiencing explosive market demand growth. Major application scenarios for energy storage include power generation (solar, wind, etc.), grid operations (peak shaving, frequency regulation, load balancing, distributed power supply), and end-user applications (residential, commercial/industrial, virtual power plants, data centers, 5G base stations, etc.).

On the generation side, the fluctuating and intermittent nature of renewable energy generation makes energy storage an essential requirement for smoothing power curves and ensuring grid stability. Grid-side energy storage enhances grid regulation capabilities and transmission/distribution stability. On the consumption side, residential and commercial/industrial users are driving rapid growth in energy storage system demand due to peak-off-peak electricity price differentials, independent power usage requirements, and backup power needs.

II. Electrochemical energy storage becomes mainstream, with lithium batteries accelerating penetration

Currently, energy storage methods primarily include pumped-storage hydroelectricity, electrochemical energy storage, compressed air, molten salt thermal storage, and flywheel energy storage. Among these, pumped-storage hydroelectricity still accounts for approximately 90% of the market, but its growth has slowed due to constraints related to site selection and construction timelines. In contrast, electrochemical energy storage is emerging as the primary driver of market growth due to its high response speed, high energy density, and high environmental adaptability.

Within electrochemical energy storage, lithium-ion batteries dominate, accounting for over 90% of the global cumulative installed capacity. In particular, lithium iron phosphate (LFP) batteries, with their advantages of high safety, long cycle life, and continuously decreasing costs, have gradually replaced nickel-cobalt batteries to become the mainstream technology in the energy storage market.

III. Latest Developments in Global Energy Storage Lithium Batteries by 2025

Latest data shows:

Shipments: Global energy storage battery shipments reached 250–258 GWh in the first half of 2025, representing a year-on-year increase of approximately 100%.

New installations: BloombergNEF predicts that global new utility-scale energy storage installations in 2025 will reach 94 GW (approximately 247 GWh), setting a new record high.

Regional landscape: It is estimated that the United States, China, and Europe will contribute approximately 84 GWh, 76 GWh, and 27 GWh, respectively, accounting for over 75% of the total.

Chinese market: GGII predicts that China's energy storage lithium-ion battery shipments will exceed 180 GWh by 2025, with a compound annual growth rate of over 60% over five years.

As such, energy storage lithium-ion batteries have become a key pillar of the global energy transition, with the Chinese and US markets continuing to lead growth.

IV. Cost Reduction and Technological Advancements Drive Scaling

The cost of energy storage systems is primarily composed of batteries, PCS (power conversion systems), BMS (battery management systems), and EMS (energy management systems), with batteries accounting for approximately 67% of the total cost. As the power battery industry matures, energy storage batteries benefit from scaled manufacturing, new technologies such as blade batteries, and supply chain collaboration, leading to a sustained decline in overall costs.

According to BNEF forecasts, the global cost of energy storage power station systems will decrease from USD 304/kWh in 2020 to USD 165/kWh by 2030, representing a 46% reduction. This creates the economic conditions for energy storage systems to be deployed in more scenarios.

V. Strategic Opportunities: Policy Benefits Combined with Market Demand

Overseas Markets: Policies in Europe and the US are actively promoting the transition to renewable energy, such as the EU's “2030 Climate Target Plan” and the US Department of Energy's “Energy Storage Grand Challenge Roadmap,” accelerating the application of electrochemical energy storage in residential and commercial sectors. The residential energy storage market in Europe and the US is growing particularly rapidly, with residents using energy storage systems to achieve energy independence and arbitrage between peak and off-peak periods.

Chinese Market: Under the guidance of the 14th Five-Year Plan, the National Development and Reform Commission (NDRC) and the National Energy Administration (NEA) have issued a series of supportive policies for energy storage, explicitly aiming to achieve an installed capacity of over 30 million kilowatts for new energy storage by 2025. Local governments also require renewable energy projects to be equipped with energy storage facilities, driving large-scale implementation.

Driven by both policy benefits and market demand, the energy storage lithium-ion battery industry will enter a strategic opportunity period by 2025.

VI. Conclusion

The global energy storage lithium-ion battery market is undergoing rapid expansion, driven by energy transition, policy support, technological advancements, and cost reductions, with the entire supply chain entering a phase of scaled-up and internationalized development. In the future, lithium-ion energy storage will not only become a key enabler for renewable energy grid integration but will also play a central role across multiple sectors, including residential, commercial, industrial, telecommunications, and data centers.