Energy Storage Carbon | Global Market Insights by Haycarb

The global energy storage market is on an impressive growth trajectory, with forecasts predicting an increase from $234.26 billion in 2023 to $357.44 billion by 2028. As per the Energy Storage Systems Global Market 2024 Report, this expansion, supported by a compound annual growth rate (CAGR) of 8.8%, is propelled by the increasing adoption of renewable energy and the rising demand for electric vehicles.

Overview over different types of energy storage system sorted by storage capacity and discharge time (source: Overview of Energy Storage Technologies Besides Batteries)

Energy storage systems are essential for balancing the variable outputs of renewable energy sources like solar and wind. These systems come in various forms, including mechanical (e.g., pumped hydro and flywheels), electrical (using supercapacitors and magnets), electrochemical (with batteries such as Li-Ion and lead-acid), and chemical/thermal (involving hydrogen and synthetic fuels). They play a crucial role in the energy transition by managing storage capacity and duration. The graph categorizes energy storage technologies by discharge time and capacity, with color-coding for each type to illustrate their diverse applications across various sectors.

Overview over different types of energy storage system sorted by storage capacity and discharge time (source: Overview of Energy Storage Technologies Besides Batteries)

Energy storage systems are essential for balancing the variable outputs of renewable energy sources like solar and wind. These systems come in various forms, including mechanical (e.g., pumped hydro and flywheels), electrical (using supercapacitors and magnets), electrochemical (with batteries such as Li-Ion and lead-acid), and chemical/thermal (involving hydrogen and synthetic fuels). They play a crucial role in the energy transition by managing storage capacity and duration. The above graph categorizes energy storage technologies by discharge time and capacity, with color-coding for each type to illustrate their diverse applications across various sectors.

Battery storage in the power sector was the fastest growing energy technology in 2023 that was commercially available, with deployment more than doubling year-on-year (World Energy Outlook 2023)

Batteries play a crucial role in integrating and stabilizing renewable energy sources, and there is a concerted effort to reduce reliance on regionally concentrated fossil fuels, fostering energy independence and environmental protection. This trend is underscored by the rapid growth in hybrid and electric vehicle (EV) markets, as well as the widespread use of electronic gadgets.

Battery Storage Capacity additions worldwide from 2013-2023

Battery Storage Capacity additions worldwide, 2013-2023 (source: World Energy Outlook 2023)

This exponential increase in demand has created a pressing need for materials such as lithium, graphite, lead, nickel, cobalt, and other rare earth metals alongside innovative anode materials like silicon-based composites, nanostructures, and coatings. The battery industry is highly dependent on a small number of countries for the supply and extraction of critical minerals. China is particularly dominant, managing over half of the global raw material processing for lithium and cobalt, and holds almost 85% of the global battery cell production capacity. In comparison, Europe, the United States, and Korea each account for less than 10% of the supply chain capabilities for some battery metals and cells (World Energy Outlook 2023)

Since their invention in the 1970s, lithium-ion batteries (LiBs) have evolved significantly. Transitioning from lithium metal to carbonaceous electrodes in the mid-1980s was a key development, leading to commercialization in the early 1990s.

Battery Storage Capacity additions worldwide, 2013-2023 (source: World Energy Outlook 2023)

Battery storage in the power sector was the fastest growing energy technology in 2023 that was commercially available, with deployment more than doubling year-on-year (World Energy Outlook 2023)

Lithium-ion Battery Technology Roadmap from 2019 to 2050 (source: S&P Global)

Today, LiBs are the standard for a wide range of applications, from consumer electronics and power tools to electric vehicles and stationary storage systems. Lithium-ion batteries have dominated over the last decade with a 90% cost reduction since 2010, increasing energy densities and longer lifespans. Prices dropped from USD 1,400/kWh in 2010 to below USD 140/kWh in 2023 due to advances in R&D and manufacturing scale (World Energy Outlook 2023).

Lithium-ion batteries are being developed for greater energy density and enhanced cycle life. However, the traditional graphite anode, with a capacity of around 372mAh/g, is becoming insufficient to meet the increasing demands for battery energy density. Silicon-based anodes have gradually become the next-generation lithium battery anode material that can replace graphite because of their high theoretical gram capacity, which is nearly ten times that of graphite. Recent advancements in silicon anode materials including pure silicon, coated silicon, and silicon-carbon composites that offer promising improvements. These innovations, which can replace or complement graphite, enhance battery efficiency significantly.

Visual representation of battery technologies for storage applications

Potential applications of various battery technologies for storage applications by storage duration (source: World Energy Outlook 2023)

SIBs also come with limitations including lower energy density, being in the initial phases of technology, and higher weight per given capacity. Despite these challenges, SIBs are a promising technology for some energy storage system (ESS) applications due to their safety, lower cost, and greater environmental sustainability.

Metal-sulfur batteries like Li-S are valued for their cost-effectiveness and high capacity but require conductive additives due to low conductivity. Metal-air batteries, notably Zn-air, are used in devices like hearing aids and are studied for their high discharge capacities. Redox flow batteries and solid-state batteries (SSBs) are gaining attention, with SSBs expected to offer superior energy capacities by using solid electrolytes and electrodes, potentially replacing liquid electrolyte LIBs. Beyond 2030, further cost reductions and commercial availability of SSBs could lead to significant performance improvements. On the other hand, Supercapacitor Energy Storage (SCES), ideal for short-term, high-power needs, plays a crucial role in enhancing power quality and is commonly used with batteries to boost performance.

The transition to a sustainable energy future confronts several challenges including high initial costs, regulatory limitations, and unfamiliarity within the industry, along with geopolitical issues. Significant market transformations in energy storage and battery materials are being influenced by U.S. and European trade policies aimed at protecting domestic industries and promoting production in countries with Free Trade Agreements (FTAs). The U.S. Inflation Reduction Act (IRA) and similar measures in Europe seek to support local industries. Similar efforts are being made in the European Union, where CO2 standards are prompting European auto makers to expand EV production, yet they could escalate production costs and impact the affordability of clean energy technologies. Simultaneously, researchers are intensively developing new battery technologies to decrease dependence on scarce resources.

Potential applications of various battery technologies for storage applications by storage duration (source: World Energy Outlook 2023)

The battery industry is also exploring alternative technologies that promise higher safety, lower costs, and reduced environmental impacts, as the world focuses more on environmental sustainability than ever before. Notably, sodium-ion batteries (SIBs) offer sustainable alternatives with reduced resource dependence. By 2030, sodium-ion batteries are expected to represent less than 10% of EV batteries but will increasingly be used in energy storage due to their lower costs, which are about 30% less than those of LFP batteries. (World Energy Outlook 2023) SIBs also come with limitations including lower energy density, being in the initial phases of technology, and higher weight per given capacity. Despite these challenges, SIBs are a promising technology for some energy storage system (ESS) applications due to their safety, lower cost, and greater environmental sustainability.

Government support for investment in EVs, charging and batteries in selected countries from 2020-2023

Government support for investment in EVs, charging and batteries in selected countries, 2020-2023 (source: World Energy Outlook 2023)

As environmental awareness increases, there’s a push to innovate more sustainable energy storage solutions, such as developing new materials for anodes and cathodes, enhancing recycling methods, and exploring solid-state batteries.

Being a global leader in sustainable energy storage carbon material sphere, Haycarb offer innovative bio-based, renewable activated carbons for both supercapacitors and battery technologies, crucial to meet world’s energy needs while minimizing the environmental impact. Haycarb has introduced its Energy Storage Material Series (Product codes : HCE and HCH series) that cater for both supercapacitors and battery industry (Li-ion as well as Sodium-ion battery applications).

With over a decade of experience as a key global manufacturer of supercapacitor carbons using proprietary technology, Haycarb supercapacitor carbons can operate on high voltage platforms with good ESR performance and long cycle life. Haycarb’s global manufacturing footprint, widespread supply chain network spanning over all key coconut producing countries and the low carbon footprint provide distinct advantages for scalability and sustainability in this rapidly growing energy storage application segment.

The energy storage market is rapidly evolving. Companies are adapting to new technologies to stay competitive, while nations seek energy independence, often by tapping into their own scarce resources. The rapid expansion in renewable energy and electric mobility in Asia with where China and India stand out, balance the global scale on East vs West. This global drive, skewed by nationalistic regulations, incentives for energy independence, and supply chain dominance fosters selective collaboration over competition, as countries and companies align efforts to refine technologies and maximize their potential. As the market matures, a few key players and technologies are expected to dominate, offering significant opportunities for those with largest market access, technological edge and sustainable-scalable manufacturing capabilities to contribute positively to our planet’s future.

Competing Technologies in Global Energy Storage Market – Winners and Losers

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