Energy storage sector established ambitious targets for 2025 — and has already surpassed them

Rapid Growth in U.S. Grid Battery Storage

Almost ten years ago, as the energy storage sector was just beginning to emerge, industry leaders set an ambitious target: to have 35 gigawatts of grid-connected batteries in the United States by 2025.

Fast forward to the present, and the industry has surpassed expectations. In the third quarter alone, 4.7 gigawatts of battery storage were added, bringing the total to over 40 gigawatts—well ahead of schedule, according to Canary Media. In just eight years, energy storage has evolved from a minor contributor to a major force in the nation’s power supply.

From July to September, batteries accounted for nearly half of all new renewable energy capacity added to the grid. This year, renewables have led the way in new power generation, as reported by the Federal Energy Regulatory Commission.

States like Arizona, California, and Texas have seen the largest increases in storage capacity, helping to stabilize grids that have faced significant stress in recent years. Experts believe the experiences in these states can guide other regions, such as the Midwest and East Coast, where surging data center development is putting additional pressure on the grid.

Innovative Startups Drive New Solutions

The surge in energy storage has caught the attention of startups.

Redwood Materials, co-founded by former Tesla executive JB Straubel, launched a new initiative in June to give second life to used electric vehicle batteries by repurposing them for large-scale energy storage. The company observed that many batteries arriving for recycling still had substantial capacity, and the demand for grid storage was rapidly increasing.

Redwood aims to deploy 20 gigawatt-hours of battery storage by 2028. Investors have shown strong support, contributing an additional $350 million to accelerate this new venture.

Another company, Base Power, has adopted a different approach by leasing batteries to homeowners and combining them into a virtual power plant. Based in Austin, Base Power secured $1 billion in funding in October to construct a battery manufacturing facility and expand operations beyond Texas. The company has already installed over 100 megawatt-hours of batteries within the state.

Exploring Alternative Storage Technologies

While lithium-ion batteries remain the dominant technology, several startups are exploring alternatives that could significantly reduce storage costs.

• Sizable Energy is developing a unique method to store energy in flexible reservoirs floating in the ocean.
• Fourth Power utilizes carbon blocks to retain heat at extremely high temperatures, aiming to deploy this technology by 2028 at a cost lower than lithium-ion batteries or traditional peaker plants.
• XL Batteries is implementing flow-battery systems at petrochemical storage facilities, enabling large-scale storage using existing infrastructure.
• Cache Energy has created affordable calcium hydroxide pellets capable of storing energy for extended periods with minimal loss.

The Future of Energy Storage

These advancements signal a period of rapid expansion for the energy storage industry. When paired with solar and wind—currently the most cost-effective sources of new electricity—battery storage could transform both the U.S. grid and global energy markets.