Make America Great At Energy Storage
March 27, 2025
The Trump Administration is skeptical about green energy, to put it mildly. The remarks of U.S. Energy Secretary Chris Wright at CERAWeek 2025, the most influential energy conference in the U.S., summarized one of the key reasons, “Beyond the obvious scale and cost problems, there is simply no physical way that wind, solar, and batteries could replace the myriad uses of natural gas.” While this statement highlights one of the limits to scaling renewables, there are still several reasons for U.S. industry to make a concerted effort to remain at the forefront of battery storage. Although currently unable to support a wholesale energy transition, battery storage can help reduce electricity costs, compete with rivals technologically, and ensure that Chinese interests are excluded when batteries are powering critical infrastructure and industries.
Why Batteries?
Balancing electricity demand and supply is crucial for grid resiliency. Too much or too little power can lead to blackouts and damage infrastructure. This is why renewables face a unique challenge called intermittency — their energy generation depends on natural phenomena such as clouds, wind strength, or time of the day, that don’t align with electricity demand.
Energy storage can mitigate these uncertainties by storing the excess energy produced by renewables during peak hours for use when the sun doesn’t shine and the wind doesn’t blow. However, keeping energy costs down is a challenge. Storage is key to reducing the cost of energy for consumers and businesses by storing energy when prices are low and discharging it during peak electricity demand hours when prices are high – whether that energy is produced by renewals or natural gas. In California, for example, the increase in storage capacity has reduced curtailment, a term for diminished solar generation, and stabilized electricity pricing.
Energy storage also plays a vital role in enhancing energy security. First, it provides backup power during emergencies, ensuring that critical infrastructure, such as hospitals, emergency services, and communication networks, remains operational. This is especially important during extreme weather events and potential cyberattacks. Secondly, it is a pivotal technology for the U.S. to maintain its energy dominance and stay ahead in the renewable energy race.
Currently, Chinese lithium batteries are among the best in the market, contributing to Beijing’s leadership in the renewables sector and the electric vehicle industry. This opens the U.S. and other countries to geoeconomic and security risks should providers opt to use Chinese utility-scale batteries. If the U.S. does not develop better indigenous energy storage, it risks ceding its manufacturing and energy leadership to China and opening electrical grids to disruption.
Building Better Batteries, And Beyond
These factors are expected to drive record-high investments in energy storage in 2025. European countries are investing €80 billion to expand battery capacity by 2030. China, the global leader in renewable investments, is projected to quadruple its battery storage capacity in 2025 according to reported projections from Wood Mackenzie. The U.S. is set to add a record 18.2 GW of utility-scale battery storage in 2025. It is not only developed markets but also emerging ones that are anticipated to make substantial investments, with Saudi Arabia notably taking 7th place globally in capacity addition. Other emerging markets, such as Turkey and Bulgaria, are also expected to see significant investments. As the cost of batteries continues to fall, demand will rise, and global competition in the battery sector will follow.
As demand for large-scale storage rises, countries are competing to enhance their capacity, which drives the development of innovative technologies. Lithium-ion (Li-ion) batteries lead the market, but lithium extraction presents social and environmental concerns, in addition to geopolitical challenges. China, Australia, and Chile account for 90% of lithium production globally. Many companies are looking for both alternative suppliers and new technologies that address Li-ion’s limitations, like its comparatively short lifespan.
Energy Vault, for example, is one of the leading companies in gravity-based storage, offering a longer lifespan than lithium batteries and scalability across different regions and topographies, unlike hydroelectric power. This system stores energy by lifting heavy composite blocks to an elevated position using surplus electricity. The stored potential energy is released by lowering the blocks, which powers a generator via gravity.
Another company looking to offer an alternative is Quidnet Energy, which is working on Geomechanical Energy Storage (GES) to achieve a longer lifespan and a more cost-effective solution. This approach stores energy by pumping water into underground rock formations under high pressure. When energy is needed, the pressurized water flows through a turbine to generate electricity, similar to pumped hydro but utilizing underground reservoirs instead of surface-level infrastructure.
As battery prices have dropped significantly, solar energy is now cheaper than ever, and these technologies are expected to become less expensive over time. As renewables expand globally, the U.S. risks falling behind in this race unless companies invest in energy storage. Even as America shifts its focus toward hydrocarbons and exports, advancing energy storage technology must remain a priority. While the current battery storage may not be a suitable replacement for hydrocarbons or nuclear, it is a strategic necessity for maintaining competitiveness both technologically and geopolitically.
Search
RECENT PRESS RELEASES
Related Post
