Competition won lithium the battery tech war – SMA

August 18, 2015
LinkedIn
Twitter
Reddit
Facebook
Email

Competition generated in part by the transport sector has catapulted lithium to its position as storage technology frontrunner, according to Volker Wachenfeld, senior vice president for hybrid and energy storage integration at SMA Solar Technology.

Writing in a blog for PV Tech Storage on integrating batteries into storage systems, Wachenfeld said different battery technologies were being chosen for different applications that best fitted the specific characteristics of each. Flow batteries look the most appropriate for long duration applications, for instance, lithium works well in providing high power over short durations, while lead acid is low on cost and can be used effectively for applications that are not highly demanding of battery cycle life and efficiency.

“The major game changer was the competitive situation on the market,” he wrote. “Whereas sodium battery suppliers have not been facing strong competition, and actually, there are only three or four of them owning the IP to provide solutions, the lithium world has had to face the fight for the pole position in the e-mobility projects of large OEMs.

“Resulting in huge investments into R&D as well as production capacity, lithium suppliers succeeded in bringing down the costs in a way that changes the game completely,” he added.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

“Comparing current or recent tender results for large scale energy projects, lithium seems to beat sodium even if the costs per kWh are compared. And in residential markets, the first lithium battery systems provide a better pricing than lead acid systems, if the costs per ‘usable’ kWh are taken into account – a result of the fact that lithium batteries allow lower depths of discharge without a reduction of the expected lifetime.”

The rapid improvements in lithium technology have now been borne out in deployment numbers wrote Wachenfeld.

“Comparing the figures on the German residential energy storage system (ESS) market, within two short years, from a small share of lithium installations that was not really challenging the leading position of lead acid battery based systems, [lithium is now] dominating this market with more than 80% of installations today.”

Read the full blog here.

The rapid improvements in lithium technology have now been borne out in deployment numbers wrote Wachenfeld.

15 April 2026
Milan Marriott Hotel, Italy
Solarplus Europe 2026 marks the evolution of Europe’s longest-running solar conference, reflecting the industry’s transition from standalone PV to fully integrated solar-plus-storage and hybrid energy systems. Taking place in Milan, the Summit will unite developers, investors, policymakers, and technology leaders to explore how Europe can deliver firm, flexible, and bankable renewable power at scale. With a sharp focus on system integration, storage deployment, hybrid project design, and market-ready business models, Solarplus Europe provides the platform for shaping the next phase of the continent’s solar and clean power build-out.
15 September 2026
San Diego, USA
You can expect to meet and network with all the key industry players again in 2025 from major US asset owners, operators, RTOs and ISOs, optimizers, software and analytics providers, technical consultancies, O&M technology providers and more.

Read Next

March 27, 2026
Iberdrola has added its 360MWh Broadsound battery energy storage system (BESS) to AEMO’s Market Management System (MMS).
March 26, 2026
Shenzhen PowerOak New Energy Co., Ltd. (PowerOak), the fourth key player in the global portable energy storage sector, has submitted its IPO application to the Hong Kong Stock Exchange.
March 26, 2026
Transgrid has shortlisted nine utility-scale battery storage projects, totalling up to 2GW, to provide critical system strength services.
March 25, 2026
AU$2bn deal secures Boyne smelter to 2040+ with 600MW+ battery storage firming renewables for Rio Tinto’s aluminium production in Queensland.
March 23, 2026
Thimo Mueller, general manager of commercial at ASL, has urged that a ‘culture of collaboration’ will be key to New South Wales (NSW) achieving its energy storage targets.