$800-billion battery boom: Driving demand for 'critical minerals'

Clean energy is surging ahead. A key driver is an often-overlooked technology: large-scale battery energy storage systems (BESS).

This multi-billion industry is quietly booming, with up to $800 billion in investments projected between now and 2030, based on International Energy Agency (IEA) estimates.

According to the agency, the world will need a colossal 1,300 GW of battery storage by 2030 to power the renewable energy capacity necessary for keeping global warming in check at 1.5°C.

These are grid-scale batteries, the stuff that could power thousands of homes. The world is just getting started.

So, just how close are we to this ambitious target?

To meet sheer demand, battery manufacturing is expected to increase fourfold.

Money is pouring in, with BESS investments expected to quadruple to $800 billion by 2030, doubling their share in clean energy spending, as per IEA.

A RethinkX report shows that by 2030, it will be both “physically possible and economically affordable” to meet 100 per cent of electricity demand with the combination of solar, wind and batteries – dubbed as “SWB” – across the entire continental US, as well as most other populated regions of the world. 

“Unsubsidised solar and wind power are already the cheapest source of electricity in many regions, and as a result we have seen exponential growth and mass adoption of these generation technologies,” RethinkX stated.

This is where control over "critical minerals" come into play, due to the sheer spike in demand, IEA predicts.

This incentivises recycling and new innovations crucial for sustainability.

Overbuilding generating capacity through solar and wind won’t end up being a waste of resources, according to another industry report.

The reason: overbuilding solar and wind cuts the amount of batteries needed, and the total cost of the system, but also results in cheap, clean and “superabundant” electricity, dubbed as "SWB Superpower".

At the end of 2023, the world had approximately 56 GW / 200 GWh of grid-scale battery storage installed, up from just 3 GW 5 years ago.

GLOSSARY: GW vs GWh

56 GW refers to the power capacity of the batteries — the maximum amount of power that a battery can deliver at any instant.

200 GWh refers to the energy capacity of the batteries — the total amount of energy the batteries can store and release over time.

To put this in perspective, New York City uses about 50,000 GWh of electricity per year. This means that all the grid-scale battery storage in the world in 2023 could only power New York City for a day-and-a-half.

Not very impressive, as numbers are relatively small. But the industry is growing incredibly fast. 

“Like other disruptive technologies, the adoption of batteries is exponential. We expect installed capacity to increase rapidly and significantly over the 2020s and beyond,” the RethinkX report states. 

Different regions of the world are also expected to build relatively more solar and wind generation capacity than battery capacity as they invest in SWB energy systems.

One of the report’s key findings is the "Clean Energy U-curve". This concept that can be used to design an SWB system. 

This not only significantly cuts the amount of batteries needed, and the total cost of the system, but also results in "SWB Superpower" — cheap, clean and superabundant electricity.

In 2023, the global installed BESS capacity reached approximately 55.7 gigawatts (GW), marking a 120 per cent increase from the previous year.

The Energy Institute’s annual Statistical Review of World Energy provides a detailed look at each country’s grid storage battery capacity in 2023. In partnership with the National Public Utilities Council, a striking treemap visualization highlights which nations are leading the charge in grid-scale batteries.

At the forefront, China and the US dominate the landscape. China alone now boasts nearly half of the world’s grid storage capacity, surging from 7.8 GW in 2022 to a massive 27.1 GW in 2023 — a jaw-dropping 19+ GW boost, reflecting a growth rate of 249.1 per cent.

The U.S. isn’t far behind; its capacity leaped from 9.3 GW to 15.8 GW, capturing 28.3 per cent of global storage and showcasing a 70% increase.

Together, these two economic giants account for over three-quarters of the world’s grid storage capacity. In the US, California leads the pack with 8.6 GW — more than double the capacity of Texas, which sits in second place.

While Canada’s storage capacity might seem modest at only 0.4 GW, it quadrupled from the previous year, signaling a dynamic shift in its energy landscape. However, South Africa stole the spotlight with an astronomical 29,300 per cent growth rate, spurred by a new facility in Worcester.

Not all nations in the top ten experienced explosive growth. Both Ireland and Germany saw modest gains of about 28 per cent, and South Korea’s capacity remained unchanged.

As the global race towards the 2030 target intensifies, these trends in grid-scale battery storage offer a clear snapshot of where we stand—and the challenges that lie ahead—in powering a sustainable, low-carbon future.

In 2024, over 100 gigawatt-hours (GWh) of new energy storage capacity were added globally, according to Bloomberg NEF.

Turns out that the year 2024 was the year of giga-scale battery projects, with 17 entering operation, compared to only four in 2023.

From 200 GWh of BESS capacity installed in 2024, an additional 350 GWh is expected this 2025, a five-fold increase compared to 2022.

There are at least 140 BESS projects over 1GWh planned for 2025/26.

“Like other disruptive technologies, the adoption of batteries is exponential,” claims a recent RethinkX report.

This rapid expansion underscores the accelerating ESS adoption.

McKinsey also noted that this rapid expansion is particularly noteworthy considering that, a decade ago, America’s capacity for large-scale battery storage was virtually non-existent.

The ability to store energy efficiently is essential for integrating solar and wind into the power grid, as it allows for energy generated during peak production times to be stored and used when production is low.

To put this into perspective, 24 GWh is the amount of energy that's roughly equivalent to the daily output of a nuclear power plant. While it's currently small, the SWB buildup getting a major boost. And these batteries can be recharged repeatedly.

The growth in battery storage capacity cuts reliance on fossil fuel-powered "peaker" plants, typically less efficient.

A key issue with batteries: the extraction of raw materials and manufacturing processes. 

An MIT study shows that these impacts, however, are generally less severe than those associated with the extraction and combustion of fossil fuels.

Moreover, the declining costs of battery systems have made renewable energy projects more economically viable. 

In 2024 alone, prices for battery systems have fallen by 58 per cent, enabling broader adoption and integration of renewable energy sources into the power grid.

A new big power race for tech supremacy is emerging: AI could eventually drive battery innovation, helping design better chemistries and reduce reliance on scarce minerals.

Smarter, more efficient batteries could make clean energy more accessible and affordable worldwide.

Smart battery management systems will also cut downtime, and improve efficiency

With battery storage scaling up, costs dropping, and EVs accelerating, the world is charging ahead/

Grid-scale rechargeable batteries have risen to the occasion, proving to be a cost-efficient solution to handle sudden energy demands — keeping the lights on without cranking up pollution.

Batteries aren’t just backup power — they’re game-changers in the clean, quiet energy revolution.