Battery storage technology is rapidly evolving, promising to revolutionize not only the energy sector but also various other industries. This report delves into the different types of battery storage technologies, their applications in conjunction with renewable and nuclear energy sources, their role in commercial real estate, and the raw materials crucial for their production. Additionally, it explores the global distribution of these materials and the potential for the United States to lead this burgeoning industry.
Battery storage systems (BESS) utilize electrochemical processes to store and release electrical energy. They offer a solution to the intermittency of renewable energy sources like solar and wind power, enabling a more stable and reliable energy grid. As of 2021, the power and capacity of the largest individual battery storage system is an order of magnitude less than that of the largest pumped-storage power plants, the most common form of grid energy storage 1. For example, the Bath County Pumped Storage Station, the second largest in the world, can store 24 GWh of electricity and dispatch 3 GW while the first phase of Vistra Energy's Moss Landing Energy Storage Facility can store 1.2 GWh and dispatch 300 MW 1. Several battery technologies are currently available, each with its own characteristics and applications:
These are the most prevalent type of batteries used in energy storage systems, accounting for 90% of the global grid battery storage market 2. They are known for their high energy density, lightweight design, and long lifespan 2. Lithium-ion batteries have a high round-trip efficiency (RTE), exceeding 90%, indicating minimal energy loss during storage and retrieval 4. The lifespan of lithium-ion batteries can vary from 5 to 30 years, depending on factors such as the specific chemistry, usage patterns, and environmental conditions 3. Factors like discharge depth, charge cycles, and temperature also play a significant role in battery longevity 5. Lithium-ion batteries are widely used in consumer electronics, electric vehicles, and increasingly in grid-scale energy storage. The 2021 ATB represents cost and performance for battery storage across a range of durations (2–10 hours) and represents lithium-ion batteries only at this time 6.
This mature technology offers good efficiency (80-90%) and low cost 4. However, lead-acid batteries have lower energy density and a shorter lifespan compared to lithium-ion batteries 4. They are commonly used in backup power systems and grid-scale storage applications.
These batteries store energy in external tanks of electrolytes, allowing for independent scaling of power and energy capacity 7. Flow batteries have a longer lifespan than traditional batteries and are well-suited for large-scale energy storage applications 8.
These high-temperature batteries offer high energy density and long cycle life 9. They are primarily used for grid-scale energy storage and renewable energy integration.
Besides batteries, other energy storage technologies include pumped storage hydropower (PSH), flywheels, compressed air energy storage (CAES), and ultracapacitors 2. Emerging energy storage technologies like compressed air, superconducting magnets, and hydrogen storage are also being developed 10. Key players like Form Energy are developing long-duration battery storage solutions, such as iron-air batteries with a capacity range of 5 MW to 10 MW and a duration of up to 100 hours 11. Form Energy has projects underway with Dominion Energy and Xcel Energy to deploy these iron-air battery systems 11.
The NREL Storage Futures Study has examined energy storage costs broadly and specifically the cost and performance of lithium-ion batteries (LIBs) 6. This work incorporates current battery costs and breakdowns, working from a bottom-up cost model 6.
Battery storage plays a crucial role in maximizing the potential of renewable energy sources and enhancing the reliability of nuclear power:
Battery storage addresses the intermittency of solar power by storing excess energy generated during peak sunlight hours for use when sunlight is unavailable 14. This enables homeowners and businesses to maximize self-consumption of solar energy and reduce reliance on the grid 14. There are two main ways to integrate battery storage with solar power: AC-coupled and DC-coupled systems 15. AC-coupled systems connect the battery to the home's AC electrical panel, while DC-coupled systems connect the battery directly to the solar panel array's DC circuit 15. DC-coupled systems often involve the use of Rapid Shutdown Devices, which are safety mechanisms that quickly de-energize the solar panels in case of an emergency or maintenance 16.
Similar to solar, battery storage can store excess energy generated by wind turbines during periods of high wind, ensuring a continuous power supply even when wind conditions are unfavorable 17. This integration enhances the reliability and efficiency of wind power systems. Grid-forming inverters play a crucial role in wind-plus-storage systems by providing grid stability and enabling the seamless integration of wind power with battery storage 18.
While nuclear power provides a consistent baseload energy source, battery storage can further enhance its flexibility and reliability. Batteries can store excess energy generated by nuclear plants during off-peak hours, allowing for more efficient operation and reducing the need for load following 19. In emergencies, batteries can provide backup power to critical systems in nuclear facilities, ensuring safety and preventing accidents 20. Molten salt reactors, an innovative type of nuclear reactor, also offer potential for energy storage by utilizing molten salt as a coolant and a medium for storing thermal energy 21.
The commercial real estate sector is increasingly adopting battery storage to improve energy efficiency, reduce costs, and enhance resilience:
Examples of companies investing in battery storage in CRE include:
The production of batteries requires various raw materials, some of which are considered critical minerals due to their importance and potential supply chain vulnerabilities:
|
Material |
Battery Type |
Use |
|---|---|---|
|
Lithium |
Lithium-ion |
Cathode material |
|
Cobalt |
Lithium-ion |
Cathode material |
|
Nickel |
Lithium-ion |
Cathode material |
|
Manganese |
Lithium-ion |
Cathode material |
|
Graphite |
Lithium-ion |
Anode material |
|
Lead |
Lead-acid |
Electrode material |
|
Vanadium |
Flow batteries |
Electrolyte |
Cobalt, for example, is primarily sourced from the Democratic Republic of Congo, where mining practices have raised concerns about environmental degradation and human rights violations, including child labor 22.
These raw materials are mined in various locations globally:
|
Material |
Major Producing Countries |
|---|---|
|
Lithium |
Chile, Argentina, Bolivia, Australia |
|
Cobalt |
Democratic Republic of Congo |
|
Nickel |
Indonesia, Philippines, Canada |
|
Manganese |
South Africa, Gabon, Australia |
|
Graphite |
China |
|
Lead |
United States, Australia, China |
|
Vanadium |
China, South Africa |
The United States has the potential to become a leader in the battery storage industry. The country possesses significant reserves of several critical minerals, including lithium, nickel, and manganese 23. However, the U.S. currently relies heavily on imports for many of these materials, particularly graphite and cobalt. The U.S. lead battery industry has a strong sustainability record, with nearly 100% of lead being recycled and reused 24. Over 80% of U.S. lead demand is met by North American battery recyclers 24.
To enhance its position in the battery storage industry, the United States needs to:
The U.S. battery storage market is experiencing significant growth, with an estimated size of USD 711.9 million in 2023 and a projected compound annual growth rate of 30.5% from 2024 to 2030 25. This growth has the potential to create numerous jobs in the sector 25.
Battery storage is crucial for enabling off-grid applications, including in remote areas, developing countries, and even space exploration:
Battery storage technology is poised to transform the energy landscape and revolutionize industries beyond the energy sector. Its ability to integrate with renewable energy sources, enhance grid stability, and enable off-grid applications makes it a crucial component of a sustainable energy future. The United States has the potential to lead this industry by leveraging its resources, investing in innovation, and developing secure and sustainable supply chains. However, challenges remain in terms of securing critical mineral supplies and promoting domestic manufacturing. By addressing these challenges, the U.S. can unlock the full potential of battery storage, driving economic growth, improving quality of life, and creating a more sustainable future for all.