Cell manufacturing overcapacity and intense competition contributed to an 8% decline in the average cost of lithium-ion battery packs, according to BloombergNEF.
Chinese energy storage companies active in the US face an uncertain future as federal policies encourage moves to reduce their supply chain involvement.
A growing industry trend towards larger battery cell sizes and higher energy density containers is contributing significantly to falling battery energy storage system (BESS) costs.
Some long-duration energy storage (LDES) technologies are already cost-competitive with lithium-ion (Li-ion) but will struggle to match the incumbent’s cost reduction potential.