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    Batteries and energy storage in 2026: a crash course

    Batteries store electricity chemically by shuttling lithium (or sodium) ions between two electrodes, and they now power most electric cars and a fast-growing share of power grids.[1][2] As of October 2026, pack prices have hit a record low of 108 dollars per kilowatt-hour, cheap LFP chemistry dominates, and the frontier is solid-state cells, sodium-ion, multi-day storage and a supply chain that runs mostly through China.[3][4][5]

    Editor reviewedUpdated Batteries and energy storageEnergy and climateScience

    Why batteries matter

    A rechargeable battery stores electricity by moving charged lithium atoms (ions) from one side of the cell to the other while charging, then letting them flow back to power a device.[1] Lithium-ion batteries now dominate both electric cars and storage on the power grid.[2]

    They matter for two reasons. Electric vehicles need them, and EV battery deployment reached 1.2 terawatt-hours in 2025, almost 30% more than a year earlier.[6] Grids with lots of solar and wind need them too, to save cheap midday power for the evening.[7] In 2023 grid batteries were the fastest-growing commercially available energy technology.[8]

    The core technology is intercalation chemistry: lithium ions shuttle between a graphite anode and a transition-metal oxide or phosphate cathode.[9][1] What changed in the last 15 years is cost and scale. Prices fell about 90% between 2010 and 2023, and BloombergNEF’s 2025 pack average was 108 dollars per kilowatt-hour.[10][3] Nameplate cell capacity passed 4 terawatt-hours at the end of 2025, well above the 1.2 terawatt-hours deployed in EVs that year.[11][6] BloombergNEF links this overcapacity, along with competition and the shift to LFP, to prices falling even as metal costs rose.[12]

    The map of the field

    The field splits into five linked areas.

    Key ideas

    Energy density is how much energy a battery holds for its weight. Lithium-ion cells reach up to about 330 watt-hours per kilogram.[21] Cost, safety and lifetime matter just as much. LFP gives up some energy density but is cheaper and more stable, which is why it now leads.[22][4]

    Most design choices trade energy density against cost, safety and cycle life. Layered oxides (NMC) have the highest energy densities.[23] Polyanion LFP uses iron, is thermally stable and costs less, at the price of lower density and poor conductivity.[22] For the grid, what matters is cost per kilowatt-hour stored and duration. Stationary packs averaged 70 dollars per kilowatt-hour in 2025.[24] Flow batteries decouple power from energy, so a bigger tank adds more hours of storage.[25]

    Who the main players are

    China dominates. It holds over 80% of global cell manufacturing capacity, and Chinese producers supplied almost 75% of electric-car batteries in 2025.[5][26] CATL led with a 39.2% share. BYD was second, LG Energy Solution third.[18][27][28] In solid-state, Toyota with Idemitsu, Samsung SDI, BYD and QuantumScape (partnered with Volkswagen’s PowerCo) are the most-watched efforts.[29][30][31][32] The largest multi-day storage project yet announced uses Form Energy iron-air batteries.[33]

    Where the frontier is (October 2026)

    • Sodium-ion in cars. CATL and Changan unveiled a mass-production sodium-ion passenger car in February 2026, but sodium-ion capacity is still only about 1% of lithium-ion.[34][35]
    • Solid-state pilot lines. QuantumScape opened its Eagle Line in February 2026, and Idemitsu is building an electrolyte pilot plant for Toyota.[36][37]
    • Grid batteries at scale. The US planned 24 gigawatts of battery additions in 2026 and had nearly 52 gigawatts operating by mid-year.[38][39]
    • Multi-day storage. A 300 MW / 30 GWh iron-air project is the largest battery yet announced by energy capacity.[33]
    • Supply-chain politics. China’s battery export controls are suspended only until 10 November 2026. US tax credits now penalise Chinese content.[40][41]

    The tracker follows these threads, starting with the 10 November 2026 expiry of China’s export-control suspension.[40] The two debate pages weigh how close solid-state really is and whether supply chains can diversify.

    Questions readers ask

    How cheap have batteries become?

    BloombergNEF's 2025 survey put the average lithium-ion pack at 108 dollars per kilowatt-hour, a record low, and stationary storage packs at 70 dollars. In 2010 batteries cost about 1,400 dollars per kilowatt-hour.[3][24][10]

    Which battery chemistry is winning?

    Lithium iron phosphate (LFP). It made up over 55% of EV batteries deployed in 2025, up from nearly 50% in 2024, and LFP packs averaged 81 dollars per kilowatt-hour against 128 dollars for NMC.[4][13]

    Are solid-state batteries on sale yet?

    Not in mass-market cars. Toyota plans its first all-solid-state vehicle by 2028, BYD from 2027, and Samsung SDI targets mass production in the second half of 2027.[31][30]

    Who makes most of the world's batteries?

    China holds over 80% of global manufacturing capacity, and CATL alone supplied 39.2% of EV batteries installed in 2025.[5][18]

    Sources

    Each numbered claim is a statement we checked against the sources listed with it. Status shows how well established it is.

    1. [1]

      During charging, lithium ions move out of the cathode lattice to the anode to form lithiated graphite; during discharging they move back, a reversible shuttle often called the rocking-chair mechanism. confirmedas of 2026-10-10

    2. [2]

      Lithium-ion batteries dominate both electric-vehicle and stationary storage applications. confirmedas of 2024-04-25

    3. [3]

      BloombergNEF's 2025 survey found average lithium-ion battery pack prices fell 8% from 2024 to a record low of 108 US dollars per kilowatt-hour. confirmedas of 2025-12-09

    4. [4]

      LFP batteries made up over 55% of EV batteries deployed globally in 2025, up from nearly 50% in 2024. confirmedas of 2026-10-10

    5. [5]

      China holds over 80% of global battery manufacturing capacity, while the EU and the US each hold 6-7%, although capacity in Europe and the US grew about 50% year on year against China's 25%. confirmedas of 2026-10-10

    6. [6]

      EV battery deployment reached 1.2 terawatt-hours in 2025, almost 30% more than in 2024. confirmedas of 2026-10-10

    7. [7]

      Solar-plus-storage facilities let operators store power when wholesale prices are low and discharge it when prices are high. confirmedas of 2026-08-07

    8. [8]

      Battery storage in the power sector was the fastest-growing commercially available energy technology in 2023, with deployment more than doubling year on year. confirmedas of 2024-04-25

    9. [9]

      Graphite anodes store lithium ions by intercalation, in which the ions slot in between the two-dimensional graphene layers that make up graphite. confirmedas of 2026-10-10

    10. [10]

      Lithium-ion battery prices fell about 90%, from roughly 1,400 US dollars per kilowatt-hour in 2010 to less than 140 dollars in 2023. confirmedas of 2024-04-25

    11. [11]

      Global nameplate lithium-ion battery manufacturing capacity exceeded 4 terawatt-hours by the end of 2025, up roughly 30% from 2024. confirmedas of 2026-10-10

    12. [12]

      BloombergNEF attributed 2025 price falls to cell manufacturing overcapacity, intense competition and the shift to lower-cost LFP batteries, despite higher battery metal costs. confirmedas of 2025-12-09

    13. [13]

      In 2025 average LFP battery pack prices across all segments were 81 US dollars per kilowatt-hour, against 128 dollars for NMC packs. confirmedas of 2025-12-09

    14. [14]

      All-solid-state lithium batteries promise higher energy density and better safety than batteries with liquid electrolytes, partly because the solid electrolyte can act as a physical barrier to dendrites. confirmedas of 2024-04-01

    15. [15]

      The first sodium-ion battery electric car was introduced in China in late 2023, and the technology is now being scaled up. confirmedas of 2026-10-10

    16. [16]

      Battery storage provides short-term flexibility to the power system, typically for periods of one to eight hours. confirmedas of 2024-04-25

    17. [17]

      Form Energy says its iron-air system can store and discharge energy for up to 100 hours. confirmedas of 2026-10-10

    18. [18]

      According to SNE Research, CATL's share of global EV battery installations rose from 38.0% in 2024 to 39.2% in 2025, on 464.7 gigawatt-hours. confirmedas of 2026-02-04

    19. [19]

      The University of Washington's Clean Energy Institute notes that multiplying today's battery deployments 100-fold would strain supplies of lithium, nickel and cobalt. confirmedas of 2026-10-10

    20. [20]

      Nearly all batteries deployed in EVs and stationary storage in recent years are still in use, and China hosts over 85% of global battery recycling capacity. confirmedas of 2026-10-10

    21. [21]

      Lithium-ion batteries have some of the highest energy densities of any commercial battery technology, as high as 330 watt-hours per kilogram. confirmedas of 2026-10-10

    22. [22]

      Polyanion cathodes such as lithium iron phosphate cut cost by using abundant metals like iron and are more thermally stable and safe, but have poor electronic conductivity and lower densities. confirmedas of 2026-10-10

    23. [23]

      Layered oxide cathodes, the family that includes nickel-manganese-cobalt (NMC) materials, have high gravimetric and volumetric energy densities. confirmedas of 2026-10-10

    24. [24]

      Battery pack prices for stationary storage fell to 70 US dollars per kilowatt-hour in 2025, 45% lower than in 2024. confirmedas of 2025-12-09

    25. [25]

      Flow battery energy capacity is raised by enlarging the electrolyte tanks and power by enlarging the reactor, so the two can be sized separately. confirmedas of 2023-04-07

    26. [26]

      Chinese producers supplied almost 75% of the batteries deployed in electric cars worldwide in 2025. confirmedas of 2026-10-10

    27. [27]

      CATL and BYD together supplied about 55% of the global EV battery market in 2025; BYD's share dipped from 16.9% to 16.4%. reportedas of 2026-02-04

    28. [28]

      LG Energy Solution was the third-largest EV battery supplier in 2025 with 108.8 gigawatt-hours, a 9.2% share. reportedas of 2026-02-04

    29. [29]

      In October 2023 Idemitsu Kosan and Toyota agreed to develop mass production of sulfide solid electrolytes, aiming to commercialise all-solid-state batteries for battery-electric vehicles in 2027-28. confirmedas of 2023-10-12

    30. [30]

      Samsung SDI targets mass production of all-solid-state batteries in the second half of 2027. reportedas of 2026-07-02

    31. [31]

      The IEA reports that Toyota plans its first all-solid-state battery vehicle by 2028, and BYD plans to sell its first all-solid-state EV from 2027 with mass production from 2030. confirmedas of 2026-10-10

    32. [32]

      QuantumScape expanded its collaboration and licensing arrangement with PowerCo, Volkswagen Group's battery company, and added two more global automakers under joint development agreements. confirmedas of 2026-02-11

    33. [33]

      A 2026 agreement between Google and Xcel Energy includes a 300 MW / 30 GWh Form Energy iron-air battery, described as the largest battery project by energy capacity announced to date. confirmedas of 2026-03-04

    34. [34]

      On 5 February 2026 CATL and Changan unveiled what they called the world's first mass-production sodium-ion passenger vehicle, due on the market by mid-2026. confirmedas of 2026-02-05

    35. [35]

      Sodium-ion cell manufacturing capacity equals just over 1% of lithium-ion cell capacity, and announced sodium-ion projects for 2030 amount to about 7% of committed lithium-ion capacity. confirmedas of 2026-10-10

    36. [36]

      QuantumScape inaugurated its Eagle Line pilot production line, which uses its Cobra separator process, on 4 February 2026. confirmedas of 2026-02-11

    37. [37]

      In early 2026 Idemitsu began building a solid electrolyte pilot plant at its Chiba site with capacity of several hundred tons a year, due for completion at the end of 2027. reportedas of 2026-02-03

    38. [38]

      US developers planned to add 24 gigawatts of utility-scale battery storage in 2026, 28% of all planned capacity additions. confirmedas of 2026-02-20

    39. [39]

      US operational battery storage capacity reached 43.6 gigawatts by the end of 2025 and nearly 52 gigawatts by mid-2026, after average annual growth of 70% over three years. confirmedas of 2026-08-07

    40. [40]

      On 7 November 2025 China suspended the October 2025 battery and graphite anode export controls, together with related rare-earth measures, until 10 November 2026. confirmedas of 2025-11-13

    41. [41]

      For energy storage projects starting construction in 2026, at least 55% of direct costs must come from non-prohibited foreign entities, a threshold that rises to 75% by 2030. confirmedas of 2026-07-16

    Revision history (1)
    1. Page created.

    Created Oct 10, 2026. Last reviewed by an editor on Oct 10, 2026. Next scheduled review: Jan 10, 2027.

    Cite this page

    "Batteries and energy storage in 2026: a crash course." ContentLora, updated Oct 10, 2026. https://contentlora.com/explain/energy-storage

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