On the eve of the battery energy storage boom

Is Tesla a good example of a battery storage boom?

Tesla Energy, the clean energy division of Elon Musk’s Tesla, is a prime example of the battery storage boom we’re seeing throughout the United States. In 2024, Tesla deployed 31.4 GWh of energy storage products, equivalent to the annual electricity usage of nearly 3,000 typical American homes.

Are EV batteries the future of energy storage?

Global EV sales still grew 23% last year. But demand for storage batteries surged 51%, according to Rho Motion, and is on track to expand by 40% this year. Energy storage - crucial for the greener national power grids needed to meet governments' net-zero climate goals - is dominated by LFP batteries.

Why is battery storage important?

As more renewable energy sources come online, battery storage will play an increasingly important role in building the grid of the future. By capturing renewable energy and dispersing it when needed, battery storage provides the flexibility and resiliency needed to integrate renewables and meet modern energy needs.

What's going on with the EV market?

Benchmark nickel prices , burdened by oversupply, have halved over the past three years while cobalt has slumped by 60%. Global EV sales still grew 23% last year. But demand for storage batteries surged 51%, according to Rho Motion, and is on track to expand by 40% this year.

Are LFP batteries causing a boom in energy storage projects?

LFP batteries are fuelling a boom in energy storage projects that - in percentage terms - now outpaces electric vehicle sales growth. UBS bank estimates total storage capacity must grow eight-fold by the end of this decade and 34-fold by 2050 to keep up with the renewable power expansion.