Global long-duration energy storage (LDES) installations increased by 49% in 2025, primarily driven by China, which holds 93% of the market share. However, the sector faces significant financial challenges due to declining investments and competition from lithium-ion batteries, which dominate the energy storage market, leading to concerns about the long-term viability of LDES technologies.
The most valuable insight for you as a professional interested in greentech and energy storage is the critical need for market design reforms to support the commercial viability of long-duration energy storage (LDES) technologies. While LDES installations are growing, they face significant financial challenges due to declining investment and the competitive cost advantage of lithium-ion batteries. Focusing on advocating for capacity mechanisms and revenue certainty in emerging markets could be key to unlocking the potential of LDES, especially as net zero goals demand longer storage durations.