Battery Storage Hits Record 108 GW in 2025

Overview

• Global battery additions reached 108 gigawatts in 2025, a roughly 40% increase from 2024, with utility-scale systems making up about 87 GW of the total, according to IEA-backed reporting.
• China led absolute growth with just over 63 GW added, the United States added about 19 GW (roughly 16 GW utility-scale and nearly 3 GW behind the meter), and Australia surged to nearly 8 GW.
• About 24 GW of utility-scale capacity was co-located with renewables in 2025, a share just under 30%, which the IEA links to China’s early-2025 market reforms that removed broad co-location mandates.
• The economics and use case for batteries have shifted: costs fell more than 90% from 2010–2025, energy arbitrage now dominates deployments, and average commissioned project duration rose to about three hours.
• Near-term delivery of planned projects depends on clearing persistent barriers such as permitting delays, grid-connection bottlenecks and regulatory uncertainty, which could slow rollouts and affect how quickly batteries replace flexible fossil generation.