Wind does not blow all the time, nor does the sun shine consistently. Battery storage has, therefore, become an essential component of a transition from dirty fossil fuels to clean renewables, from utility-scale installations to the individual home and vehicle. While hydro, biomass, and thermal are all examples of energy storage, the battery is currently the key component that will make electricity derived from clean and renewable but intermittent sources like solar and wind available where and when it is needed.
Energy storage is also critical in meeting electricity demand during peak times, such as on hot summer days when air conditioners are blasting or at nightfall when households turn on their lights and electronics. Energy storage allows greater grid flexibility as distributors can buy electricity during off-peak times when energy is cheap and sell it to the grid when it is in greater demand. The International Energy Agency keeps an updated report on the status of energy storage: view it here.
Energy storage will play a crucial role in meeting aggressive renewable-energy targets, according to the New York State Energy Research and Development Authority (NYSERDA). In NY, this includes a mandate to derive as much as 70% of the state’s electricity from renewable sources by 2030 and 100% carbon-free electricity by 2040. “Storage will help to integrate clean energy into the grid,” and also “stabilize supply during peak electric usage,” according to NYSERDA.
Battery storage can reduce demand on the grid, provide emergency backup for residential electricity, and deliver 100% clean energy if charged by solar panels or other renewable source, replacing the need for fossil fuel-fired “peaker plants” that operate as needed to meet peak energy demand.
State-level mandates like New York Gov. Andrew Cuomo’s Community Solar and Storage Program, announced in February 2021, will “drive down costs and scale up the market for these clean energy technologies.”
In 2021, President Joe Biden issued two executive orders related to batteries and the domestic supply of critical minerals. Also in 2021 the DOE announced the Grid Storage Launchpad, an energy storage research and development facility. The Biden-Harris Administration’s transformative Inflation Reduction Act of 2022 includes investments and tax credits in energy storage. Explore the IEA’s complete database of energy storage policies in the United States.
Trump’s One Big Beautiful Bill act repealed much of the IRA’s tax credits, including for EVs and battery storage.
In July 2025, the Trump administration announced a 93.5% tariff on Chinese graphite, a necessary material for lithium-ion batteries. Researchers at Yale’s Clean Energy Forum found that Trump’s escalating tariffs on Chinese lithium-iron-phosphate battery imports could reduce 2050 U.S. lithium-ion battery installations by 8% to 38%. Rising tariffs and costs are already leading to battery plant cancellations - including a battery manufacturing plant in Georgia and a lithium-ion factory in Arizona - and thousands of jobs lost.
Reduced tax credits combined with tariffs could hamper growth in the booming battery industry, and could cause a 29% reduction in grid battery installations over the next decade. Additionally, reduced DOE funding could impede research on alternative energy storage technologies.
At the same time, the Trump administration has not targeted energy storage in the same way as renewables like wind and solar, with Energy Secretary Chris Wright delivering a speech in favor of domestic battery industry growth and research. Of course, the administration’s targeting of wind and solar energy and electric vehicles will reduce demand for battery storage.
Battery costs have been decreasing due to electric vehicle production, research and development, with 90% cost-reductions in lithium batteries since 2010. At the same time, mineral prices are rising. Making batteries cheaper is not just dependent on technological innovations, but battery mineral prices are also key. Researchers are exploring other alternatives, including flow batteries, thermal batteries, and gravity-based systems. Read about four cutting-edge energy storage technologies here, and an integrated survey of recent developments here.
According to an IEA report on Batteries and Secure Energy Transitions, battery storage was the fastest growing energy technology in 2023, with deployment doubling. While there has been significant progress, storage is still not on track to meet Net Zero goals. In order to achieve COP28 targets, battery deployment will need to increase sevenfold by 2030.
CREDIT: NBC, 3/13/20
