Long-duration energy storage deployments increased by 49% in 2025, largely driven by China's support, but face challenges due to competition from lithium-ion batteries, which dominate the market due to cost and supply chain advantages. Despite the growth, the outlook remains uncertain for long-duration energy storage technologies, which are hindered by insufficient demand and pricing mechanisms, requiring ongoing policy support to achieve commercial viability.
The key insight for you as a professional in greentech and renewable energy is the significant growth in global long-duration energy storage (LDES) deployments, which rose 49% in 2025, driven predominantly by China. However, the report highlights a strategic challenge for LDES technologies, as lithium-ion batteries are capturing the critical four to eight-hour storage market due to cost and supply chain advantages. This underscores the need for policy support and innovative pricing mechanisms to enhance the commercial viability of LDES technologies, crucial for achieving net zero goals.