Energy Storage Report

The energy storage technology landscape is constantly evolving, with efforts focused on finding alternatives to Lithium-Ion battery technology while also improving existing Lithium-Ion solutions. There’s a push to commercialize Long Duration Energy Storage (LDES) technologies, which presents a fundamental challenge for the industry. These advancements aim to enhance storage duration, address material degradation, and improve overall performance. It’s a dynamic race to bring new solutions to market and meet the growing demand for energy storage across various sectors.

Another promising challenger in the battery landscape is Sodium-ion (Na-ion) batteries. In July 2023, the Chinese market saw the first grid-scale application of Na-ion batteries with a 5MW unit, signaling their potential for broader adoption Energy Storage News, 2023). Major producers like CATL and BYD have integrated Na-ion batteries into their mass production schedules, and companies like Northvolt are investing in Na-ion battery cell manufacturing for energy storage applications CnEV Post, 2023) Northvolt, 2023).

Early production estimates suggest a steady improvement in battery density, with Northvolt reporting over 160 watt-hours/kg in energy density for Na-ion batteries. Trend data indicates that by 2022, the energy density of Na-ion batteries was approaching the level of lower-end Lithium-ion batteries in 2012 MIT Technology Review, 2023). However, it’s important to note that the scale and learning curve advantages of Lithium-ion batteries have been relatively higher due to their larger production base.

In a similar vein, zinc-based hybrid batteries are gaining traction, supported by significant investment from the US Department of Energy. Eos Energy, a leading provider in this space, has secured substantial funding to expand its production capacity for zinc-halide batteries MIT Technology Review, 2023). With a planned 8GWh capacity by 2026, Eos Energy’s endeavors are bolstered by incentives provided under the Inflation Reduction Act of August 2022 PV Magazine, 2023). Moreover, these emerging technologies are strategically positioned to capitalize on opportunities arising from the decommissioning of coal-fired power plants. In essence, the commercialization of alternative battery technologies hinges on several factors, including mass production feasibility and raw material sourcing costs. As the industry evolves, a select few leading technologies are expected to emerge victorious, challenging the dominance of incumbent Lithium-Ion batteries in the energy storage landscape.

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Policy support plays a crucial role in the commercial development of early-stage Long Duration Energy Storage (LDES) technologies. Examples abound in regulatory directives, such as those seen in California and Arizona, explicitly requiring LDES solutions. Notably, California recently approved an 8-hour Lithium-Ion LDES project, with other proposals under evaluation. These battery technologies, including iron-air batteries, are tailored to meet LDES demand and receive grants and support from regulatory authorities.

In the United States, the Department of Energy (DoE) oversees the Earthshot program, a $1 billion initiative aimed at reducing LDES costs by 90% to achieve Net-Zero targets US DoE, 2021). The DoE plans to extend the Earthshots program globally, starting with collaborations with Canada and India Clean Technica, 2023). Meanwhile, the UK government pursues LDES through different avenues, defining it as storage duration of 6 hours and above. The government has floated consultations on proposed measures, such as cap-and-floor regulations and exclusion of Lithium-Ion, to promote the LDES sub-segment. Stakeholders have until March 5, 2024, to provide feedback on these consultations (Energy Storage News, 2024).

The significance of major policy support measures lies in their role in bolstering experimental initiatives that stabilize the energy storage business and its nascent technologies. LDES technologies are critical for achieving Net-Zero objectives and facilitating the energy transition process by providing economical options that enhance energy system flexibility.