1. Large-scale battery storage drives market growth

Grid-connected large battery storage will account for the largest share of growth in 2025. Of the 315 GWh newly installed, around 240 GWh are attributable to large-scale stationary systems. These storage systems can absorb large amounts of electricity, temporarily store them and use them specifically to stabilize the grid.

At the same time, the average project size is growing significantly. While in 2024 only 17 storage projects achieved a capacity of more than one gigawatt hour, this number rose to 46 systems in 2025. Battery storage is therefore increasingly being planned as independent infrastructure projects and no longer exclusively as a supplement to generation systems.

2. Battery storage takes on key tasks in the energy system

As large-scale storage expands, its range of uses is also shifting. Battery storage compensates for short-term load fluctuations, stabilizes frequencies and reduces load peaks in the network. At the same time, they increase security of supply by making electricity available even if wind or solar power fails for a short time.

More and more countries are therefore integrating battery storage into their energy and network expansion plans. They are considered a crucial prerequisite for further expanding renewable energies without endangering the stability of the electricity grid.

3. China and the USA shape the global memory market

The regional distribution of the new capacities shows clear priorities. China is consolidating its position as the world’s largest market for stationary battery storage. In December 2025 alone, the country installed more new storage capacity than the US did in the entire year before.

The United States remains the second most important market. Significant investments are being made there in storage projects, particularly to stabilize the grid, integrate renewable energies and secure critical infrastructure.

At the same time, new regions are gaining in importance. Saudi Arabia, Australia and Chile are now among the fastest-growing markets in the world. High shares of renewable energies and ambitious energy policy goals are accelerating the expansion of battery storage there.

4. Price development between cost reduction and raw material pressure

Despite the sharp increase in demand, prices for battery storage systems continued to fall in many regions in 2025. In China in particular, projects were sometimes realized at a cost of around US$63 per kilowatt hour. These price levels increase competitive pressure on international providers and promote the global spread of storage solutions.

At the same time, new risks are emerging. Lithium became noticeably more expensive due to limited inventories, lower production volumes and growing demand. Although the share of lithium is currently around seven percent of the cost of an AC block, rising cell prices of around ten percent could impact the economic viability of new projects in the future.

5. Global record for battery storage – the role for energy transition and grid stability

The global expansion of battery storage is directly related to the progress of the energy transition. Without efficient storage, high proportions of fluctuating renewable energies can hardly be efficiently integrated into existing power grids. Battery storage provides the flexibility needed to better manage supply and demand.

They also take on tasks such as frequency control, voltage maintenance and emergency power supply. In many regions they are increasingly replacing conventional reserve power plants or significantly reducing their use.

A current industry analysis by BloombergNEF underlines this development. Accordingly, large-scale, grid-connected storage projects in particular are gaining momentum worldwide and are significantly driving market growth. Nelson Nsitem, Senior Associate at BloombergNEF, explains:

“The global energy storage market is poised for further growth in 2025 as developers advance ever larger grid-connected storage projects, supporting the expansion of renewable energy.”

6. The future? Growth continues beyond 2026

Industry experts expect installation numbers to continue to rise sharply in the coming years. For 2026, market observers predict newly installed storage capacities worldwide of more than 450 GWh. Supply bottlenecks are currently considered unlikely as manufacturers are continually expanding their production capacities for battery cells.

Europe is also developing dynamically. Studies expect an increase of almost 30 GWh in 2025 alone, which corresponds to an increase of around 36 percent. Funding programs, regulatory adjustments and new business models act as additional growth drivers.

7. The conclusion: Energy storage will become the foundation of the power supply

The market development in 2025 makes it clear: Battery storage have finally left their role as niche technology behind. They are moving to the center of modern energy systems and are increasingly forming the foundation of a stable, renewable power supply.

Large-scale projects, falling system costs and reliable political framework conditions in key markets such as China and the USA are accelerating this change. At the same time, factors such as raw material availability, production capacities and regulatory requirements are increasingly determining the pace and scope of further expansion.