The Upheaval in the Global Energy Storage Market: Battery Technology Innovations and Market Restructuring by 2025
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Explosive Growth and Technological Innovation in the Energy Storage Market
The global energy storage market stands at the center of unprecedented change as of 2025. According to the latest report from the International Energy Agency (IEA), the global Battery Energy Storage System (BESS) market in 2025 recorded a 35% increase from the previous year, reaching a scale of $320 billion, which is a fourfold increase compared to 2020. The backdrop of this rapid growth includes the proliferation of renewable energy, the need to secure grid stability, and the explosive growth of the electric vehicle market.
A particularly noteworthy change is the fundamental shift in the battery technology paradigm. Over the past decade, lithium-ion batteries have dominated the market, but as of 2025, Lithium Iron Phosphate (LFP) batteries have taken a 68% share of the entire energy storage market, establishing themselves as the new mainstream technology. The latest LFP battery announced by China’s CATL (Contemporary Amperex Technology Co. Limited) achieved an energy density of 210Wh/kg, significantly narrowing the performance gap with existing NCM batteries. More importantly, the cost per kWh of LFP batteries has dropped to $85, securing a 30% price competitiveness compared to NCM batteries ($120/kWh).
Korean battery companies are actively responding to these market changes. LG Energy Solution began mass production of next-generation LFP batteries at its Nanjing plant in China in the third quarter of 2025, securing an annual production capacity of 50GWh. Samsung SDI has started full-scale production of its self-developed ‘Prism LFP’ cells at its Seremban plant in Malaysia in the second quarter of this year, announcing a 15% improvement in energy density compared to existing LFPs. SK Innovation has also expanded its LFP battery production line in Georgia, USA, establishing an annual production system of 30GWh.
Sodium-Ion Batteries: The Game Changer in Next-Generation Energy Storage
The most innovative change in the energy storage market in 2025 is the full-scale commercialization of sodium-ion batteries. The sodium-ion battery pack released by China’s BYD in the first half of this year demonstrated excellent performance with an energy density of 150Wh/kg, a charging speed of 15 minutes (80% charge), and normal operation even at minus 40 degrees Celsius. Notably, the cost per kWh is $60, which is 30% cheaper than LFP batteries. Sodium offers significant advantages in terms of supply chain stability, as it has 1,000 times more resource deposits than lithium and less regional concentration.
According to analysis by market research firm BloombergNEF, the sodium-ion battery market is expected to grow from $1.2 billion in 2025 to $24 billion in 2030, with an average annual growth rate of 83%. This is mainly due to the rapid adoption in the large-scale Energy Storage System (ESS) sector. In August this year, the state of California in the USA approved a grid-scale ESS project using sodium-ion batteries with a capacity of 500MWh, which is set to become the world’s largest commercial sodium-ion battery project.
Korean companies are also actively pursuing the development of sodium-ion battery technology. Samsung SDI announced that a high-performance sodium-ion battery developed jointly with the Korea Advanced Institute of Science and Technology (KAIST) achieved an energy density of 170Wh/kg, with pilot production targeted for the first half of 2026. LG Energy Solution is collaborating with the University of Michigan in the USA to develop sodium-sulfur battery technology, which is theoretically expected to achieve an energy density of over 500Wh/kg.
In terms of competitive landscape, Chinese companies are leading in the sodium-ion battery field. CATL filed 187 patents related to sodium-ion batteries in the first half of 2025 alone, holding 35% of the world’s sodium-ion battery patents. BYD successfully applied sodium-ion batteries to its electric vehicle ‘Seagull,’ reducing the vehicle price to below $10,000. Meanwhile, Korean companies are focusing on high-performance sodium-ion battery material technology, with POSCO Chemical announcing it has secured an annual production capacity of 5,000 tons of cathode materials for sodium-ion batteries.
Looking at actual market application cases, China’s State Grid Corporation is proceeding with a project to build a 1GWh sodium-ion battery ESS in Shandong Province in the second half of 2025 to store wind power. This project was constructed at 40% lower cost compared to existing lithium-ion battery ESS and is expected to reduce the total cost of ownership (TCO) by 50% over 20 years of operation. In Europe, German energy company E.ON has started a pilot service for home ESS using sodium-ion batteries, with initial customer satisfaction reaching 92%.
Another innovation in the energy storage market is the accelerated commercialization of solid-state battery technology. Japan’s Toyota Motor Corporation began mass production of electric vehicles equipped with solid-state batteries under its Lexus brand in October 2025, announcing an energy density of 400Wh/kg and a driving range of 500km with a 10-minute charge. In Korea, Samsung SDI is conducting research and development with the goal of operating a solid-state battery pilot production line by 2026, having currently achieved an energy density level of 350Wh/kg. The solid-state battery market is expected to grow rapidly from $500 million in 2025 to $6.5 billion in 2030, mainly utilized in premium electric vehicles and the aerospace sector.
Policy support is also accelerating the growth of the energy storage market. The United States is providing a tax credit of $30 per kWh for energy storage systems through the Inflation Reduction Act (IRA), with a total of $12 billion in tax benefits expected to be provided in 2025 alone. China has set a goal to expand energy storage capacity to 300GWh by 2030 through its ’14th Five-Year Plan,’ investing 50 billion yuan (approximately $7 billion) annually to achieve this. The Korean government also announced an investment of 2 trillion won in next-generation battery technology development by 2030 through the ‘4th Energy Technology Development Plan.’
From a market outlook perspective, the global energy storage market is expected to grow at an average annual rate of 25% to reach a scale of $850 billion by 2030. The Asia-Pacific region is projected to account for 55% of the total market, with China and Korea emerging as key markets. By technology, LFP batteries are expected to maintain a 70% market share by 2030, but sodium-ion batteries are projected to secure a 15% share, and solid-state batteries 10%, indicating market diversification. From an investment perspective, the valuation of companies related to energy storage continues to rise, with particular interest from investors in companies possessing next-generation battery technology, suggesting very high long-term growth potential.
This post is intended for informational purposes only and does not constitute investment solicitation or advice. Investment decisions should be made at one’s own discretion and responsibility, and it is recommended to conduct thorough research and consult experts when investing in the mentioned companies or technologies.
