Cost Projections for Utility-Scale Battery Storage: 2025 Update
In this work we describe the development of cost and performance projections for utility-scale lithium-ion battery systems, with a focus on 4-hour duration systems. The projections are
This study shows that battery electricity storage systems offer enormous deployment and cost-reduction potential. By 2030, total installed costs could fall between 50% and 60% (and battery cell costs by even more), driven by optimisation of manufacturing facilities, combined with better combinations and reduced use of materials.
Battery storage costs have evolved rapidly over the past several years, necessitating an update to storage cost projections used in long-term planning models and other activities. This work documents the development of these projections, which are based on recent publications of storage costs.
These trends point toward future scenarios of cost reductions and the potential of solid-state batteries. Innovations in energy storage technologies, particularly with lithium-ion and sodium-ion batteries, have substantially reduced costs.
Energy storage cost is an important parameter that determines the application of energy storage technologies and the scale of industrial development. The full life cycle cost of an energy storage power station can be divided into installation cost and operating cost.
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