Li-ion battery energy storage systems (BESS) remain the global market leader, with 92.3 GWh deployed in 2023 across grid-scale, commercial, and residential applications, according to a recent IDTechEx report.
The widespread adoption of Li-ion BESS has been driven by significant cost reductions and continued technological advancements that enhance safety and energy density. These characteristics make Li-ion batteries a preferred choice for customers prioritising efficiency, durability, and cost-effectiveness in energy storage solutions.
Emerging technologies, including CATL's "zero-degradation" TENER system, have captured industry attention. The TENER system reportedly maintains zero degradation for five years, a claim achieved through biomimetic SEI, self-assembly electrolytes, and pre-lithiation additives.
These innovations are part of a broader industry trend to optimise system-level energy density and reduce lifecycle costs, enabling Li-ion technology to maintain its dominance in the energy storage market.
IDTechEx forecasts the Li-ion BESS market to reach US$109bn by 2035. A notable shift in Li-ion technology is the increasing adoption of lithium iron phosphate (LFP) chemistry, which offers cost advantages, longer cycle life, and a lower risk of thermal runaway compared to nickel manganese cobalt (NMC) chemistry. LFP's affordability and stability have positioned it as the dominant choice for stationary energy storage applications.
While LFP cells generally have lower energy density than NMC cells, advancements in larger cell form factors and system design have improved energy efficiency.
These enhancements enable manufacturers to allocate more container volume to active cells rather than components like thermal management systems, saving space and reducing installation costs.
Notable examples include Narada Power’s 5.11 MWh system, featuring a cell-level energy density of 390 Wh/L, and CATL’s 6.25 MWh TENER container, offering 430 Wh/L and a ~25% increase in system-level energy density over previous models.
These developments are crucial for high-capacity projects in spatially constrained locations. Despite its challenges, such as supply chain complexities and cost fluctuations, Li-ion technology remains critical to global energy transition efforts. Its proven reliability and scalability for grid-scale projects ensure its continued prominence. Furthermore, as the demand for sustainable energy solutions grows, ongoing innovations in Li-ion BESS will help meet stringent market requirements.
Innovations for energy storage systems
