The rapid development and advancement of battery technology so far has been set to accelerate the pace of energy transition globally, and play a major role in tackling the climate change crisis. In the first half of 2019 alone, $ 1.4 billion was invested in battery technology, significantly more than in previous years. This investment is leading to steady advances in technology, which are set to shift how will be organised energy systems as soon as 2030. According to evidence detailed in Rocky Mountain Institute’s (RMI) Breakthrough Batteries Report, cost and performance improvements are quickly outpacing forecasts. Increased demand for electric vehicles (EVs), grid-tied storage, and other emerging applications are further fuelling the cycle of investment and setting the stage for mass adoption.
With the continued advancement and development of the battery market, this technology will contribute to the replacement of natural gas plants and will enter other market segments, such as including heavy trucking and short-range aviation. With this transition, legacy infrastructure across the fossil fuel value chain risks becoming stranded, including gas pipelines and internal combustion engine manufacturing plants.
Already, the declining cost of battery technology is contributing to planned natural gas power generation being cancelled.
This technology increases different opportunities for value creation and exploitation in the transition to a clean energy economy. Capturing the vast potential requires a holistic approach from public and private sectors alike. Collaborative, systems-based strategies to developing battery-enabled markets will provide an opportunity to hasten the rapid and economic transition to resilient, clean, and affordable energy systems. It is clear that breakthrough battery technologies will play a central role in our energy system sooner than previously thought possible.