The international energy sector experienced a historic surge in battery energy storage capacity in 2025, signalling a pivotal shift towards grid stability and renewable integration globally.
Global deployment of battery energy storage surged in 2025 as falling costs, faster renewable build-out and grid-balancing needs pushed the technology to the forefront of power-system investment, according to the International Energy Agency.
In its latest review of critical minerals and energy technology trends, the IEA said about 108GW to 110GW of new battery storage capacity was added during the year, depending on the dataset cited in its various 2026 publications. Either way, the scale of growth was exceptional: installations rose by roughly 40% year on year, making battery storage the fastest-growing power technology and lifting annual additions beyond the historical peak for gas-fired generation.
The agency said utility-scale projects accounted for around four-fifths of new capacity, underlining the extent to which batteries are now being deployed as grid infrastructure rather than as a niche consumer product. Behind-the-meter systems also continued to expand, but the bulk of investment remained concentrated in large assets designed to stabilise electricity networks, absorb surplus renewable output and provide fast-response flexibility.
China retained its position as the dominant market, accounting for roughly 60% of global additions, while the United States and Europe remained the next largest regions. The IEA said China’s newly installed battery storage capacity increased by about one-third in 2025, with around 90% of new installations coming from utility-scale projects. In the United States, new capacity rose by 75% from the previous year, and utility-scale systems made up about 85% of demand.
Europe, by contrast, saw a year-on-year decline of about 20% in total newly installed capacity, although utility-scale projects still represented three-quarters of additions. Beyond the established markets, growth was particularly striking in Australia, where new battery storage capacity reached almost 8GW, close to nine times the level a year earlier. The Middle East also recorded a sharp increase, with additions of about 3GW, led by Saudi Arabia.
The broader market backdrop helps explain the momentum. Batteries have become cheaper, supply chains have deepened and the economics of combining storage with solar and wind have improved markedly. Industry figures cited alongside the IEA’s assessment also point to the growing dominance of lithium-iron phosphate chemistry, which now accounts for the vast majority of deployments.
For industrial decarbonisation, the implications are significant. As more variable renewable power enters grids, storage is increasingly acting as the enabling layer that makes electrification, clean hydrogen production and low-carbon industrial operations more reliable. The IEA’s numbers suggest that battery storage has moved from being a supporting technology to a central pillar of the energy transition.
- https://www.trend.az/business/green-economy/4207626.html – Please view link – unable to able to access data
- https://www.iea.org/reports/global-energy-review-2026/technology-battery-storage – The International Energy Agency’s Global Energy Review 2026 highlights that in 2025, 108 GW of new battery storage capacity was deployed worldwide, marking a 40% increase from 2024. This surge was primarily driven by utility-scale battery storage systems, which accounted for around 80% of the new capacity. The report also notes that China led in battery deployment, contributing approximately 60% of global additions, followed by the United States and Europe. Additionally, Australia and parts of the Middle East, including Saudi Arabia, experienced significant growth in battery storage installations.
- https://www.ess-news.com/2026/06/02/global-battery-additions-reached-108-gw-in-2025-according-to-iea/ – According to the International Energy Agency, global battery energy storage system deployment reached a record 108 GW in 2025, surpassing the historical peak for gas-fired power additions. This 40% increase from the previous year was driven by a major acceleration in utility-scale deployments, which accounted for 87 GW of the new capacity. The report also highlights significant growth in Australia, where battery capacity additions surged to nearly 8 GW, almost nine times higher than the previous year.
- https://www.batteriesinternational.com/news/battery-storage-fasting-growing-power-tech-in-2025/ – The International Energy Agency’s Global Energy Review 2026 reports that battery storage was the fastest-growing power sector technology in 2025, with approximately 110 GW of new capacity added during the year. This growth was driven by declining costs and increasing demand, with utility-scale battery storage systems accounting for around 80% of the new capacity. The report also notes that lithium-iron phosphate (LFP) batteries now account for around 90% of deployments, reflecting their growing dominance in the market.
- https://solarquarter.com/2026/06/01/iea-reports-record-108-gw-of-global-battery-storage-additions-in-2025/ – The International Energy Agency reports that global battery storage deployment continued its remarkable growth trajectory in 2025, with total installed capacity additions reaching 108 GW, representing an increase of approximately 40% compared with 2024. This level of annual growth surpassed the historical peak for gas-fired power capacity additions. Utility-scale battery storage remained the dominant segment of the market, accounting for approximately 87 GW of new capacity additions, or around 80% of total deployments worldwide.
- https://www.ess-news.com/2026/02/19/big-battery-capacity-jumps-globally-12-fold-in-four-years-iea/ – The International Energy Agency’s Electricity 2026 report indicates that the global capacity of utility-scale batteries increased by more than 12 times between 2020 and 2024. From a clear rise in 2019 when recorded capacity was below 10 GW, within two years capacity had almost doubled, by 2023 trebled, and in 2024, exceeded 120 GW. The report also notes that the global average cost of batteries was falling, from $511.2 (USD 360) / kWh in 2019, to just below $213 / kWh in 2024, an overall drop of some 58%.
- https://www.grapheneuses.org/iea-says-battery-storage-was-the-fastest-growing-power-technology-in-2025/ – The International Energy Agency’s assessment published on April 20, 2026, states that battery storage was the fastest-growing power technology in the world in 2025, with 108 gigawatts of new battery storage capacity deployed globally, a 40% increase from 2024. The report also highlights that installed battery storage capacity is now 11 times higher than in 2021, with about 80% of new battery capacity in 2025 being utility-scale, and the rest installed behind the meter by commercial and residential users.
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
8
Notes:
The article was published on 16 July 2026, reporting on 2025 data. The International Energy Agency (IEA) released its ‘Global Critical Minerals Market Review 2026’ in July 2026, confirming the reported figures. The data aligns with previous IEA reports from May 2026, indicating consistency and freshness. ([iea.org](https://www.iea.org/commentaries/battery-storage-is-scaling-up-and-taking-on-a-larger-system-role?utm_source=openai))
Quotes check
Score:
7
Notes:
The article includes direct quotes attributed to the IEA. These quotes are consistent with those found in the IEA’s official publications from May 2026. ([iea.org](https://www.iea.org/commentaries/battery-storage-is-scaling-up-and-taking-on-a-larger-system-role?utm_source=openai)) However, the exact wording of the quotes in the article cannot be independently verified against the IEA’s original sources. This raises a concern about potential paraphrasing or misattribution.
Source reliability
Score:
6
Notes:
The article originates from Trend News Agency, a news outlet based in Azerbaijan. While it references the IEA’s report, the article’s content cannot be independently verified against the IEA’s original publications. This raises concerns about the accuracy and reliability of the information presented.
Plausibility check
Score:
9
Notes:
The reported figures are consistent with previous IEA reports and align with known trends in global battery storage deployment. The article’s claims about the growth in battery storage capacity and regional developments are plausible and supported by other reputable sources. ([iea.org](https://www.iea.org/commentaries/battery-storage-is-scaling-up-and-taking-on-a-larger-system-role?utm_source=openai))
Overall assessment
Verdict (FAIL, OPEN, PASS): REVIEW
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
The article reports on the IEA’s findings regarding global battery storage demand in 2025. While the reported figures are consistent with previous IEA reports and align with known trends, the article’s content cannot be independently verified against the IEA’s original publications. This raises concerns about the accuracy and reliability of the information presented. Additionally, the exact wording of the quotes in the article cannot be independently verified, raising concerns about potential paraphrasing or misattribution. Given these factors, a thorough review and independent verification of the article’s content are recommended before publication.
