BAKU, Azerbaijan, June 5. Global investment in battery storage grew by 45% in 2024, according to a new outlook from the International Energy Agency (IEA), with the United States, China, and Europe accounting for over 90% of the total capital inflow, Trend reports.
This surge is driven largely by government policies, wholesale market volatility, and rising power demand, particularly from the expanding data center industry.
In the United States, states like California, Texas, and Arizona are leading battery deployment thanks to long-term contracts with utilities and policy support. However, tariffs on Chinese battery imports may slow this momentum, particularly in cost-sensitive utility-scale projects.
China remains a powerhouse, spurred by mandates requiring storage integration with new renewables. But upcoming policy reforms are expected to cool growth in the latter half of 2025. In contrast, Europe’s battery boom is showing signs of fatigue, despite growing calls for more flexibility amid power price volatility.
Meanwhile, emerging markets face steep financing costs - up to double those in advanced economies. India is a notable exception, with battery investments expected to surpass $1 billion in 2025.
Utility-scale battery systems, essential for stabilizing grids and enabling renewable expansion, made up over half of total investment and two-thirds of new capacity in 2024. Yet, supply chain risks remain. After spiking in 2022, lithium prices fell sharply in 2024, easing production costs - but potentially undermining new mining investment needed for future supply.
The IEA warns that without a stable and diversified mineral supply, global battery growth could face renewed volatility in the years ahead.
