Are lithium-ion battery arrays on electrical grids safe? Residents
A large lithium battery energy storage system operated by Key Capture Energy that can power 15,000 homes for two hours during outages or high demand sits surrounded by a fence in
Lithium bulls are betting on energy storage systems as the next meaningful pillar of demand for the battery metal, nudging the global market back toward balance after years of oversupply. Giant utility-scale batteries, which absorb and store electricity for controlled release, are an increasingly important consumer of lithium.
A large lithium battery energy storage system operated by Key Capture Energy that can power 15,000 homes for two hours during outages or high demand is shown in Blasdell, N.Y., Tuesday, Sept. 9, 2025. (AP Photo/Ted Shaffrey)
Battery storage, meanwhile, is becoming a significant demand driver for lithium. For one, the cost of building utility-scale batteries has declined in recent years. These improving economics, as well as policy mandates to integrate more clean energy, are helping with the scale-up.
Lithium-ion batteries have become the dominant energy storage technology due to their high energy density, long cycle life, and suitability for a wide range of applications. However, several key challenges need to be addressed to further improve their performance, safety, and cost-effectiveness.
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