Energy storage: 94 GW of new installations in 2025

The global energy storage market is set for another record year in 2025, as large-scale projects expand into new geographies. According to BloombergNEF (BNEF) , developers will add 94 gigawatts (247 gigawatt hours) of battery capacity this year, up 35% from 2024, the highest annual total on record (excluding pumped hydro). By 2035, BNEF expects compound annual growth of 14.7%, with annual new installations reaching 220 GW/972 GWh.

Mainland China remains the world’s largest market, driven by a requirement to pair storage with new wind and solar installations. However, a reform introduced in February 2025 will bring payments for renewables to a market basis , removing the storage requirement as a condition for grid connection. Local authorities will have to work out the implementation details by the end of the year, and some provinces have already retained the coupling requirement. Installations will remain high, according to BNEF, thanks to the economic viability of the projects and existing local regulations.

In the United States , rising import tariffs have dampened growth prospects. The administration has raised tariffs on batteries and components from China , Canada and Mexico , to 145% for Chinese ones starting April 10. In BNEF’s baseline scenario (54% tariff), costs for a four-hour turnkey system rise 30% in 2025, to $266/kWh. In a scenario with higher tariffs, annual new installations could fall 51% to 74% between 2025 and 2027. Rising costs are leading to contract renegotiations, project delays and some cancellations, while domestic cell makers are still dependent on imported materials such as graphite.

Utility-scale projects are driving capacity growth in Saudi Arabia, South Africa, Australia, the Netherlands, Chile, Canada and the United Kingdom . In the Europe–Middle East–Africa region, utility-scale storage is growing faster than residential installations and is expected to become the dominant segment by 2026. Globally, commercial installations will surpass residential installations by 2030, driven by the spread of integrated PV + storage solutions.

Lithium iron phosphate (LFP) chemistry continues to dominate the stationary storage sector, led by Chinese manufacturers such as CATL, BYD and Eve Energy. Nickel-based technologies — such as nickel-manganese-cobalt and nickel-cobalt-aluminum — remain relevant for electric vehicle batteries and some utility-scale projects, particularly in Japan , South Korea and the United States . Interest in sodium batteries has declined due to falling LFP prices.