# Batteries & Energy Storage

## Source Metadata

<table id="bkmrk-fieldvalue-sourceiea"><tr><th>Field</th><th>Value</th></tr><tr><td>source</td><td>iea</td></tr><tr><td>source\_version</td><td>ETCS 2025</td></tr><tr><td>source\_id</td><td>IEA-SUP-007</td></tr><tr><td>iea\_category</td><td>energy\_supply</td></tr><tr><td>technology</td><td>Batteries &amp; Energy Storage</td></tr><tr><td>technology\_readiness</td><td>commercial</td></tr><tr><td>mitigation</td><td>Y</td></tr><tr><td>adaptation</td><td>N</td></tr><tr><td>last\_checked</td><td>2026-05-26</td></tr></table>

## IEA Technology Definition

The IEA classifies battery energy storage systems (BESS) and other storage technologies as critical enablers of clean energy transitions. Grid-scale batteries store electricity for later dispatch, providing flexibility, frequency regulation, and peak shaving. The category also includes pumped hydro, compressed air, and emerging long-duration storage technologies such as flow batteries and thermal storage.

## Technology Readiness &amp; Deployment

Battery storage is the fastest-growing power technology today. Global deployment reached 108 GW of new battery storage capacity in 2025, up 40% from 2024. Lithium-iron phosphate (LFP) chemistry accounts for approximately 90% of grid-scale deployments. The IEA considers battery storage on track for net zero targets, though long-duration storage (beyond 4-8 hours) remains at early commercial or demonstration stage and needs accelerated deployment.

## Key Metrics &amp; Benchmarks

Lithium-ion battery pack costs have fallen below USD 140/kWh on average and continue to decline. Grid-scale BESS typically provides 2-4 hours of storage, with costs around USD 150-250/kWh installed. Battery manufacturing capacity is concentrated in China (over 75% of global cell production). LFP dominates stationary storage while NMC and emerging sodium-ion chemistries compete for different applications.

## LATAM Relevance

Battery storage deployment in Latin America is accelerating, driven by the need to integrate growing solar and wind capacity. Chile has commissioned several utility-scale BESS projects to manage grid congestion in the north. Brazil's auction frameworks are beginning to include storage. Argentina and Chile's lithium reserves position the region as a potential battery manufacturing hub, though current value-addition remains focused on raw material extraction.

## Critical Minerals Link

Batteries are the single largest driver of critical mineral demand growth. LFP batteries require lithium and phosphate; NMC batteries additionally need nickel, cobalt, and manganese. Chile holds 26% and Argentina 6% of global lithium production. Battery recycling is emerging as a critical supply chain strategy, with cobalt and nickel recovery rates improving.

## Cleantech Taxonomy Crosswalk

Maps to Cleantech Taxonomy sectors: ES (Energy Systems) — grid-scale storage, renewable integration; TR (Transport) — EV batteries and vehicle-to-grid; IN (Industry) — battery manufacturing; XS (Cross-Sectoral) — distributed storage, behind-the-meter systems.