Global Battery Production Must Scale Up to Meet Climate Security Goals at COP28
The International Energy Agency (IEA) has emphasized the urgent need to ramp up global battery production in order to achieve the climate security targets outlined at COP28.
Battery Technology Surpasses Clean Power Solutions
IEA’s latest report highlights the remarkable growth of battery technology in 2023, surpassing almost all other clean power source solutions.
Expected Sharp Fall in Battery Costs to Drive Renewable Energy Shift
IEA predicts that a significant decline in battery costs will accelerate the transition to renewable energy from fossil fuels in the near future.
IEA’s Warning on Shortfall in Battery Deployment
IEA cautions that a shortfall in deploying enough batteries could hinder clean energy transitions in the power sector, jeopardizing the achievement of climate goals.
Key Role of Batteries in Power Sector Transformation
Batteries are essential for achieving the ambitious targets set at COP28, with a sixfold increase in global energy storage needed by 2030 to meet the world’s energy goals.
Battery Manufacturing Trends and Global Distribution
IEA reports that battery manufacturing has tripled in the last three years, with China dominating 83% of current production capacity. However, advanced economies like the US and EU are also ramping up their battery manufacturing capabilities.
Transition from Consumer Electronics to Energy Sector
The energy sector now accounts for over 90% of global battery demand, indicating a significant shift from consumer electronics to energy storage solutions.
Falling Battery Costs and Competitive Energy Alternatives
Battery costs have plummeted by over 90% in less than 15 years, making solar PV and batteries competitive with new coal plants in India. The declining costs of batteries are revolutionizing the energy landscape.
Policy Support for Battery Deployment and Supply Chain Diversity
Governments play a crucial role in supporting resilient supply chains for batteries and promoting technology manufacturing through legislative measures like the Inflation Reduction Act and Net-Zero Industry Act.
Versatility of Battery Storage in Clean Energy Transition
Batteries are key to smoothing out renewable energy variability and alleviating grid congestion, providing critical services during emergencies and enabling energy access for millions of people in developing economies.