The global energy storage sector has achieved a remarkable milestone, surpassing its ambitious 2025 targets well ahead of schedule and signaling a transformative shift in how the world powers its grids. With record-breaking installations, unprecedented manufacturing capacity, and a surge in investment, the energy storage industry is demonstrating that the clean energy transition is not only viable but accelerating faster than many experts predicted. This unprecedented growth reflects a confluence of favorable policies, declining battery costs, and increasing demand from utilities, corporations, and data centers seeking reliable, renewable-powered electricity.
Record-Breaking Battery Storage Installations Drive Global Growth
The energy storage sector has shattered expectations in 2024 and into 2025, with installations rising by more than 75% measured in megawatt-hours year-over-year in 2024.[3] The United States alone commissioned an estimated 11.9 GW of battery energy storage in 2024, marking the fifth consecutive year of record-setting annual additions and representing a 55% jump from the previous year.[4] This explosive growth positions the US as the world's second-largest battery storage market after China, despite facing headwinds from tariff uncertainties and supply chain challenges.
Globally, the momentum has been equally impressive. Long-duration energy storage technologies achieved a historic milestone in 2024, with global installed capacity exceeding 1 GW for the first time during the first nine months of the year, translating to 4.6 gigawatt-hours in energy capacity terms.[4] By August 2025, energy storage capacity in California alone reached 14 GW, demonstrating how quickly deployment is accelerating in key markets.[5] These figures underscore that the industry is not merely meeting targets—it is fundamentally reshaping the energy landscape.
Manufacturing Capacity Expansion Fuels Long-Term Momentum
The manufacturing sector is keeping pace with soaring demand, with the US establishing itself as a critical hub for battery production. By the end of 2024, American factories were capable of producing 159 gigawatt-hours of storage cells, representing a 39% year-on-year increase.[4] This expansion reflects broader industry confidence in sustained growth, with the number of planned manufacturing facilities rising to 264 as of December 2024, representing over $100 billion in investments.[4]
Major facilities like Ultium's 35 GWh plant in Tennessee opened in 2024, initially targeting automotive applications but contributing to the broader ecosystem of battery manufacturing expertise.[4] This diversification of production capacity—spanning stationary storage, clean vehicles, and solar facilities—demonstrates how integrated the energy storage sector has become within the broader clean energy economy. The manufacturing surge is particularly significant as it reduces supply chain vulnerabilities and positions domestic producers to capture growing market share.
Policy Support and Investment Surge Accelerate Market Expansion
Investment in battery storage has reached unprecedented levels, with global battery storage investment rising by 33% in 2024 compared to the previous year, reaching a record high of USD 54 billion.[8] This capital influx reflects institutional confidence in the sector's long-term viability and growth prospects. In the United States, the Inflation Reduction Act's development incentives have been instrumental in driving this buildout, making energy storage one of the cheapest sources of new bulk generation even without tax credits.[4]
Policy frameworks worldwide are reinforcing this momentum. The United Kingdom published its Clean Power 2030 Action Plan in December 2024, setting ambitious clean energy targets and calling for 23-27 GW of battery capacity and 4-6 GW of long-duration energy storage.[3] Similarly, 23 US states plus the District of Columbia and Puerto Rico have established 100% clean energy goals, positioning energy storage as a critical "non-wires alternative" for grid reliability and renewable integration.[3] These supportive regulatory environments are expected to provide market stability even as trade and tax policies evolve.
Emerging Technologies and Diverse Storage Solutions Gain Traction
Beyond lithium-ion batteries, the energy storage sector is diversifying rapidly with long-duration energy storage technologies capturing significant attention. Thermal storage companies like Rondo Energy, Malta, and Antora Energy are pioneering brick-, molten salt-, and carbon-based systems that convert electricity into heat for later use or industrial applications.[5] Hydrogen and fuel cell technologies are also advancing, with companies like EnerVenue and Energy Vault demonstrating hydrogen-based fuel cell batteries suitable for microgrids and resilience applications.[5]
The 2025 Energy Storage Awards recognized innovation across multiple categories, including Safety Product of the Year, Battery OEM of the Year, and LDES Company of the Year, highlighting the breadth of technological advancement.[1] These diverse solutions are essential for meeting varying grid needs across different regions and use cases, from utility-scale installations to distributed residential systems.
Frequently Asked Questions
How much did global energy storage installations grow in 2024?
Global energy storage installations rose by more than 75% measured in megawatt-hours year-over-year in 2024, with the United States alone commissioning an estimated 11.9 GW of battery energy storage.[3][4] This represented the fifth consecutive year of record-setting annual additions for the US market.
What is the current US battery manufacturing capacity?
By the end of 2024, the US had factories capable of producing 159 gigawatt-hours of storage cells, reflecting a 39% year-on-year increase.[4] This capacity is expected to continue expanding with 264 manufacturing facilities planned as of December 2024.
What role does long-duration energy storage play in the sector's growth?
Long-duration energy storage technologies achieved a historic milestone in 2024, with global installed capacity exceeding 1 GW for the first time during the first nine months of the year.[4] These technologies are particularly important for developing countries and regions requiring reliable energy access and grid stability.
How much investment has the energy storage sector received?
Global investment in battery storage rose by 33% in 2024 compared to the previous year, reaching a record high of USD 54 billion.[8] Additionally, over $100 billion in investments have been announced for 264 planned manufacturing facilities in the US alone.[4]
Which countries are leading in energy storage capacity deployment?
China has the largest installed base of energy storage globally, followed by the US in fourth place.[4] The UK has set ambitious targets of 23-27 GW of battery capacity and 4-6 GW of long-duration energy storage by 2030 through its Clean Power 2030 Action Plan.[3]
What factors are driving the energy storage sector's rapid growth?
Key drivers include the Inflation Reduction Act's development incentives, falling battery costs due to fierce competition among manufacturers, strong demand from utilities and corporate buyers, increasing grid reliability needs, rising demand from AI and data centers, and supportive state and national clean energy policies.[3][4]