– Despite cost cuts and increased deployment in the power sector, batteries need a sixfold increase in global energy storage to meet 2030 targets
– Battery deployment in the power sector and electric vehicle sales have surged in recent years, with significant growth expected in the coming years
– Battery manufacturing has tripled in the last three years, with global efforts needed to scale up deployments, lower costs, and ensure a diverse supply chain for critical minerals.
The International Energy Agency (IEA) states that batteries need to lead a sixfold increase in global energy storage deployments to meet 2030 targets. Battery growth outpaced other clean energy technologies in 2023 due to falling costs and increased demand, with battery deployment in the power sector more than doubling. Battery costs have fallen by over 90% in the last 15 years, driven by advances in technology and policies.
Most batteries used are based on lithium-ion and are now primarily used in the energy sector. The IEA reports that battery deployment in the power sector increased by over 130% in 2023, adding 42GW to electricity systems globally. Electric car sales have surged due to batteries, with close to 14 million sold in 2023.
To meet energy and climate goals, battery deployment must increase significantly by 2030, with a focus on reducing costs while maintaining quality and technology. Investment in battery manufacturing is growing, with plans for new facilities in advanced economies. The Global EV Outlook 2024 predicts that EV sales will continue to rise, reaching 17 million in 2024 and making up a significant portion of global car sales.
The rapid expansion of electric vehicles will impact the auto industry and energy sector by reducing oil demand and accelerating the transition to electric vehicles worldwide. Despite varying levels of progress in different markets, the momentum behind electric vehicles is expected to continue growing.