Global battery deployment has seen a remarkable surge, driven by falling costs, advancing innovation and supportive policies, according to the latest report from the International Energy Agency (IEA).
This surge, particularly in lithium-ion batteries, has outpaced growth in almost all other clean energy technologies in 2023.
The report, titled “Special Report on Batteries and Secure Energy Transitions,” emphasizes the crucial role batteries play in achieving climate and energy targets outlined at COP28.
Over the past 15 years, battery costs have plummeted by over 90%, making them a competitive alternative to electricity generation from fossil fuels.
While lithium-ion batteries were initially associated with consumer electronics, they now dominate the energy sector, accounting for over 90% of overall battery demand.
In 2023 alone, battery deployment in the power sector surged by over 130%, adding 42 gigawatts (GW) to global electricity systems.
Additionally, batteries have facilitated the rapid growth of electric vehicle sales, from three million in 2020 to nearly 14 million in 2023.
IEA Executive Director Fatih Birol said: “Batteries will provide the foundations in both areas, playing an invaluable role in scaling up renewables and electrifying transport while delivering secure and sustainable energy for businesses and households.
“The combination of solar PV and batteries is today competitive with new coal plants in India. And just in the next few years, it will be cheaper than new coal in China and gas-fired power in the US. Batteries are changing the game before our eyes.”
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