Battery technology experienced remarkable growth in 2023, surpassing most other clean energy solutions.

The IEA predicts a sharp decrease in battery costs, which will accelerate the transition from fossil fuels to renewable energy.

The report states that battery deployment in the power sector doubled in 2023 and will need to increase sixfold by 2030 to help the world meet its climate targets.

At the COP28 summit, 200 countries pledged to increase renewable energy capacity threefold by 2030, accelerate power source efficiency improvements, and phase out fossil fuels.

To achieve this, 1,500 gigawatts of battery storage are needed.

However, the International Energy Agency (IEA) expressed concern about a potential shortage of battery deployment, which could hinder clean energy transitions.

IEA reported that battery manufacturing has tripled in the last three years, with China producing 83% of the global capacity.

Forty percent of new battery manufacturing plans are in advanced economies like the US and EU, which could meet their own needs to 2030 if all projects are completed.

The energy sector now accounts for over 90% of battery demand, up from their use in consumer electronics.

In 2023, battery deployment in the power sector increased by over 130% compared to the previous year, adding 42 GW.

Batteries have also contributed to the surge in electric car sales, which grew from 3 million in 2020 to almost 14 million in 2023.

The International Energy Agency (IEA) reported that global electric car sales grew by 25% in the first quarter of 2024 compared to the same period in 2023.

Fatih Birol, IEA’s executive director, stated that the electricity and transport sectors are crucial for reducing emissions and meeting the targets agreed at COP28 to limit global warming to 1.5 degrees Celsius.

The IEA chief, Birol, stated that batteries are crucial for scaling up renewable energy and electrifying transport, while also providing secure and sustainable energy for businesses and households.

Battery costs have dropped by over 90% in the past 15 years, making solar PV and batteries competitive with new coal plants in India, and soon cheaper than new coal in China and gas-fired power in the US.

However, further cost reductions are necessary without compromising quality and technology.

Birol also emphasized the need for greater diversity in supply chains for critical minerals used in batteries to ensure energy security.

The International Energy Agency (IEA) emphasizes the importance of governments building resilient supply chains for batteries to ensure a secure and sustainable market.

Legislation such as the Inflation Reduction Act in the US, the Net-Zero Industry Act in the EU, and the Production Linked Incentive in India can support technology manufacturing and bring about change in the industry.

IEA also emphasizes the role of battery storage in the energy transition, particularly in the power sector where batteries help stabilize renewable energy sources like wind and solar.

The International Energy Agency (IEA) emphasized the importance of battery storage in addressing grid congestion during times of high renewable electricity supply and meeting international energy and climate targets.

Batteries can capture excess renewable energy and provide critical services during emergencies and grid disruptions.

They also offer technical services like voltage and frequency control to help system operators and provide electricity access to 400 million people in emerging and developing economies through decentralized solutions.

The IEA emphasized the need for rapid battery deployment to reduce emissions and achieve universal energy access by 2030.