Battery storage is the fastest growing power technology today. In 2025, 108 GW of new battery storage capacity was deployed worldwide, 40% more than in 2024. Installed capacity is now eleven times higher than in 2021. Lithium‑iron phosphate (LFP) batteries now account for around 90% of deployments; while less energy‑dense than rival chemistries commonly used in EVs, LFP batteries are typically cheaper and better suited to more frequent cycling. Just five years ago, the market share of LFP batteries in deployments was well below 50%.

Around 80% of new battery capacity in 2025 was utility‑scale. The remainder was behind-the-meter capacity installed by commercial and residential consumers. Battery storage durations are gradually lengthening. While most projects still cluster around two hours, an increasing number can be deployed for four hours or more, reflecting the growing value of flexibility in systems with rising shares of PV.

China continued to lead battery deployment in 2025, accounting for around 60% of global additions, followed by the United States and Europe. However, deployment is widening beyond the largest markets, with strong momentum in Australia and parts of the Middle East, where storage is increasingly seen as a key building block for electricity security and renewables integration.

Battery-based uninterruptible power supplies (UPS) – primarily in data centres – also saw significant growth, with capacity additions rising 30% to 45 GW in 2025. However, unlike battery storage systems, UPS generally only provide short‑duration backup to bridge outages until other backup sources start.