As electricity demand grows, and the grid’s resilience during the renewable energy transition remains a top priority, robust battery storage is one of the key prongs of success. Without the ability to store solar and wind energy, the goal of managing electricity loads with renewable energy is simply inconceivable.
China understood this early, and now owns about 77% of the global battery manufacturing market, an astounding number that only grows more startling when you see that Poland and the U.S. are in second place with 6% of the market, each.
Battery storage will be crucial to the globe’s efforts to produce and sustain a power system through the wind and sun. The U.S. wants a larger role in that future, and on Wednesday, announced a $3.5 billion investment in domestic battery storage production, from mining the materials to sending off the finished batteries to utilities, power generators and neighborhoods.
The world remains stuck on the lithium-ion train, a the-best-we’ve-got product that is far from perfect. Perhaps one of the more interesting facets of the U.S. Department of Energy’s investment is that, sure, it will focus on mining lithium and other minerals needed to build the batteries of today, but it is also putting significant money into research and development of alternative battery builds. Striking gold in that department might offer the U.S. its best chance at chipping into China’s grip on the battery market.
“In this funding opportunity, DOE is prioritizing next-generation technologies and battery chemistries, in addition to lithium-based technologies,” DOE announced in a press release.
The announcement comes as Chinese President Xi Jinping visits President Biden in San Francisco as part of the Asia Pacific Economic Partnership conference. APEC represents the first true meeting of Biden and Xi, and while issues like climate change and Taiwan will certainly be discussed, China’s dominance in electric vehicles and batteries, I’m sure, will be another point of discussion.
