Why the energy storage market is set to explode | Energy Insights - May 2022

Decarbonising road transport is critical to reaching net zero and, despite global EV sales more than doubling last year, there is a long way to go as EVs still represent only 9% of global passenger vehicle sales. EV sales are expected to continue to increase sharply in the coming years, helped by policy support, battery density and cost improvements, more widespread charging infrastructure and increasing vehicle manufacturer uptake of EVs.

Renewables are also key to the energy transition and the pace of their rollout continues to accelerate, spurred on by their increasing cost competitiveness and new government targets to decarbonise energy systems, with the current natural gas crisis only likely to amplify this trend. The problem with solar and wind is their intermittency.

Batteries have a massive role to play if we are to reach net zero and battery storage to integrate renewables into power grids is gaining traction and growing fast. EV battery supply chains are already under pressure, stationary energy storage requirements are increasing and alternatives to lithium-ion are needed globally. Nevertheless, new battery chemistries are being commercialised and in this report we look at a panoply of battery technologies being developed.