As the global energy storage market is growing rapidly, enterprises are actively developing behind-the-meter (BTM) energy storage products, while the market saw energy storage for C&I and residential storage emerging and integration of related hardware and software with renewable energy and charging stations. This indicates the energy storage market is maturing. Policies, electricity prices, and the installed capacity of renewable energy are major factors that affect the development of energy storage.

Factors that drive energy storage development catalyzed this year in the three major markets, including China’s 14th Five-Year Plan as well as mandatory and incentive policies for energy storage, Europe's RePowerEU program and skyrocketing electricity prices caused amid energy crisis caused by the Russia-Ukraine war, and the U.S.’ Inflation Reduction Act (IRA) that has a direct impact on the development of renewable energy and energy storage. Against these backdrops, InfoLink expects the global energy storage market to reach 50 GWh this year, with a 100% growth rate, and exceed 100 GWh by 2025. In addition, China will grow at the fastest pace, reaching 50 GW in cumulative term by 2025, well above its national target of 30 GW.

At present, the global lithium battery capacity is concentrated in the Asia-Pacific region, mainly in China, Japan, and South Korea. With soaring demand from the electric vehicle industry, the capacity can no longer satisfy demand, which has caused the energy storage industry to suffer from the longer lead time and rising prices of battery cells over the past year. While cell manufacturers are expanding, the growing awareness of national energy security and circular economy makes building a local lithium-ion battery supply chain in Europe and the U.S. a trend among enterprises and governments to wean off their dependence on China. Spurred by rapidly growing lithium battery market, cell manufacturers are ramping up their capacity at a fast pace.

InfoLink estimated that the global cell capacity will grow from 1,400 GWh in 2022 to 6,000 GWh in 2030, with a compound annual growth rate of 20%. In addition, there will be a significant supply surplus in 2024, which suggests intensified competition among cell companies from 2024 onwards and increased importance of obtaining upstream lithium ore and related compound resources. As supply chains are becoming more localized, InfoLink projects that the global share of China's cell capacity will decrease from 70% in 2022 to 52% in 2030, while Europe and the U.S. will increase from 14% and 6% in 2022 to 27% and 18% in 2030, respectively.



Policies have stimulated the development of energy storage, while the fast growth of electric vehicles has led to changes in the supply chain of lithium-ion battery.

InfoLink will host a webinar on Nov. 23 in collaboration with Reccessary, providing insights and analysis of the solar and energy storage market development amid net-zero transition to help businesses make strategic decision. The webinar will focus on:

• Forecast for energy storage trends and market size in each country driven by policies
• Global lithium-ion battery supply and demand
• Localization of lithium-ion battery

Speaker

InfoLink

Dr. Yuan Fang-wei
Senior ESS Analyst

Dora Zhao 
Senior Solar Analyst

Derek Zhao 
Senior Solar Analyst

Amy Fang 
Senior Solar Analyst

Reccessary

Judy Chao 
Researcher