SMM: Exploring the Potential of Different Energy Storage Technologies at Li-ion Battery Europe 2024

At the Li-ion Battery Europe 2024 held by SMM in Brussels, Belgium, SMM Senior Consulting Project Manager Zhu Jian shared insights on the topic "Unlocking the Potential of Different Energy Storage Technologies."

Global Energy Storage Market Overview

Global Energy Storage Market Production (Y22-2030F) (Energy Storage Systems)

According to SMM's forecast, from 2023 to 2025, the global energy storage system production is expected to have a compound annual growth rate of around 57%; from 2025 to 2030, the compound growth rate is expected to be around 20%.

From a market perspective, from 2023 to 2025, China's energy storage system production is expected to grow rapidly at an average annual compound growth rate of 31%. This is due to the mandatory energy storage policies in China's 14th Five-Year Plan and local government investment subsidies. From 2025 to 2030, the expected compound annual growth rate is about 20%, mainly driven by the demand for wind energy, solar energy storage, and independent energy storage.

In the North American market, the compound annual growth rate of energy storage system production from 2023 to 2025 is expected to be 29%. Policy-wise, the implementation of the IRA Act and the continuation of tax reduction and subsidy policies for trade centres will help reduce capital costs. From 2025 to 2030, the annual growth rate of North American energy storage production is expected to be 21%. During this period, the continuation of subsidies for the home energy storage market will help achieve local energy storage goals.

The European market shows higher growth prospects. From 2023 to 2025, the compound annual growth rate of the European energy storage market is expected to be 37%. As the household energy shortage issue eases between 2024 and 2025, the growth of the home energy storage market will return to normal. From 2025 to 2030, although subsidies for home energy storage will decrease, the power reform bill will drive the development of large-scale commercial and industrial energy storage.

Lithium-ion Battery Energy Storage Technology Map and Development Status

Overview of Energy Storage Technology Development

Introduction to Different Energy Storage Technologies

Electrochemical energy storage technology has developed due to its technological maturity and location flexibility; hydrogen storage is known for its clean, low-carbon, long-term storage time, and long-distance transportation solutions

Performance Comparison of Different Energy Storage Technologies

The best development of electrochemical energy storage is due to the advantages of lithium batteries in technology, industrial chain support, and low cost; sodium batteries, similar to lithium batteries, can develop rapidly.

According to research on the different maturity levels of energy storage technologies in China and abroad, the commercially available and relatively mature technologies mainly include electrochemical energy storage, represented by lithium battery energy storage; other developing technologies include compressed air, flywheel energy storage, flow batteries, sodium-ion batteries, and gravity energy storage technologies.

Development of Lithium Battery Energy Storage Technology

Trends in Energy Storage Products:

Larger capacity, better safety, and aftermarket. Specifically:

Larger battery-grade capacity: 300+Ah is becoming more common in China; 314Ah is the mainstream for 300+Ah batteries; 500/600 Ah+ production lines are under construction.

Better safety performance at the system level (e.g., high-temperature resistance): high-temperature resistance; stricter requirements (e.g., more compact spaces); relatively isolated/independent modular safety management.

More attention to the aftermarket: service as a product; participation in project operation management and tracking product performance improvements.

Large Capacity: Trends in Energy Storage Batteries and Containers

In Q3 2023, battery capacity was around 314Ah, and containers were around 4MWh; by 2025, battery capacity is expected to reach 500+Ah, and containers around 5MWh; in the longer term, battery capacity is expected to exceed 600+Ah, and containers around 6MWh.

More attention to the aftermarket

Main issues in the energy storage aftermarket: reduced charging efficiency, cycling life decay, safety issues (e.g., short circuits, overheating);

Key success factors in the energy storage aftermarket: quick response, clear responsibility departments, clear reference standards, future plans for performance improvement.

What can SMM provide? SMM Business Introduction and Solutions

SMM Consulting Services: Over 15 years of corporate consulting experience, with more than 1,500 successful strategic and market consulting projects

SMM's sample size covers over 95% of China's production

SMM's preliminary tracking of the global energy storage market: large-scale/residential energy storage units + energy storage integration + 90% market coverage rate