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

hkzths4frx53ec5o7ebby)mz_media_dl_1.png BloombergNEF

Article content

(Bloomberg) — Accelerating demand for long-lasting energy storage offers a rare opportunity for US and European clean technology companies to compete with China’s globally dominant battery sector.

Article content

Installations of long-duration systems — an umbrella term for so-called super-batteries that can store and deliver electricity for many hours or even days — are surging as the world looks to better harness renewable energy. Deployments are forecast to almost quadruple this year after a record 2025, according to BloombergNEF.

Article content

Article content

Article content

China has built a commanding lead in lithium-ion batteries, which generally hold up to four hours of discharge and can delay the use of daytime solar power until the evening demand peak. Storage over far longer time periods — to handle sustained spells of low renewables output, or to ensure grid stability — has greater potential for competition as it encompasses a wider range of technologies.

Article content

Article content

Those options include batteries using a more eclectic mix of metals, or systems that can store energy in hot bricks, tap the potential of gravity, or compress air into caverns. 

Article content

“The race is still pretty much open,” and there’s no one-size-fits-all solution, said Frederic Godemel, executive vice president for energy management at Schneider Electric SE, a supplier of power equipment including server racks and cooling technology.

Article content

While China currently accounts for about 72% of cumulative long-duration storage capacity — including almost all installations last year — the US is the second-largest market and expected to ramp up deployments later this decade, as are nations including Germany, India and Japan, BNEF said last month. US installations could be accelerated further as the boom in data center construction adds fresh demand for reliable power.

Article content

Article content

“China leads in scale,” said Yiyi Zhou, a BNEF analyst specializing in energy storage. “The US has the most diversified type of technology in development.”

Article content

Unlike in other areas of clean technology, Chinese companies also have less potential to become major exporters and capture market share overseas. China is focused on a narrower set of technologies than other countries, and long-duration storage — often referred to as LDES — can typically need specific designs for particular locations.

Article content

“Long-duration storage is not a commodity like solar panels,” said Zhou. “I don’t expect LDES to be easily exported at a large scale.”

Article content

That’s likely to support domestic supply chains, and the UK and Italy are among nations already setting policies to encourage deployments. Developing viable and cost-effective methods for 10 to 100 hours or more of storage “should be a priority for governments anticipating future high shares of variable renewable electricity supplies” or weather-related disruptions to hydropower, the International Energy Agency said in a February report.