Battery storage projects accelerate rapidly

18 January 2024
Economic growth and rising awareness of the environment and sustainability is driving the market

Investment in battery projects has accelerated rapidly with increasing demand for energy storage and shift to electric vehicles (EV) according to a report by GlobalData.

Economic growth and rising awareness of the environment and sustainability is creating the need and financial means to transition from Internal Combustion Engine (ICE) driven vehicles to EV the report says.

Clean energy from wind and solar power plants and storage of power for an uninterrupted power supply is driving the need for Battery Energy Storage systems worldwide. GlobalData is currently tracking global battery construction projects with a total value of $449.8bn (including all projects from announced to execution stage with a minimum value of $25m).

The Asia Pacific region accounts for the highest share, with a combined project pipeline valued at $204.8bn, ahead of the Americas with $130.2bn.

For countries, China is leading the battery revolution with $139.4bn investment followed by the US with $118.5bn.

The projects in execution amount to $163bn, while projects in the pre-execution stages (comprising design, tender and award) account for $8.7bn. Projects in the planning stage amount to $194 billion, with early-stage projects, those at the pre-planning stage (announced and study), totalling $82bn.

Assuming all projects proceed as planned and that spending is evenly distributed over the construction phase of all projects, annual spending on the global battery construction projects pipeline could rise from $54.6bn in 2023 to $78.2bn in 2024 and $103.6bn in 2025.

Based on the pipeline of projects, a total of 246 projects will start construction in 2023-2027, with a total value of $319.4bn. The Asia-Pacific region has the highest number of battery construction projects that will be started during this period, totalling 113 factories with an investment of $123.2bn, ahead of the Americas with 70 ($99bn) and Europe, the Middle East and Africa (EMEA) with 63 ($97.2bn).

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