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Even High Battery Prices Can’t Chill the Hot Energy Storage Sector

Battery prices rose 7% in 2022 and will remain elevated. But overall, there are more positive than negative forces acting on the fast-growing industry. 

Lithium-ion energy storage batteries in Blythe, California. 

Lithium-ion energy storage batteries in Blythe, California. 

Photographer: Bing Guan/Bloomberg

Lithium-ion battery storage has expanded by orders of magnitude since the 1990s, with new devices creating ever-larger demand. Camcorders came first, followed by personal computers and then smartphones and other personal electronics. In the 2010s, the newest and far biggest demand center emerged: electric vehicles. EVs now drive the bulk of global lithium-ion battery manufacturing, as well as substantial R&D.

As the industry scaled, costs fell. A kilowatt-hour of lithium-ion battery storage declined in cost by 80% from 2013 to 2021.