Asia has long been the house of the world’s leading centers of lithium-ion cell manufacturing and it seems to be continuing for the next decade. In line with the plummeting price of renewable-based technologies such as PV modules and off/onshore wind, battery storage is also has gone the same way as these technologies.
According to Wood Mackenzie, although battery price reductions were the biggest driver in system costs falling “faster than anticipated” during last year, there has also been a growing focus on reducing the costs of the other hardware components that make up large-scale energy storage systems that provide energy, capacity or power services for utilities and grid operators. Analysts of Wood Mackenzie estimate grid-scale battery storage price will witness a 30% reduction by 2025.
China’s industry, currently the cheapest globally market for full system costs at US$554/kW during 2020, will enjoy a 33% decline in costs for 2-hour duration front-of-the-meter energy storage to US$369/kW by 2025; Australia is predicted to see a 34% decline in costs from US$990/kW in 2020 to US$658/kW in 2025 and South Korea a 29% decrease from US$821/kW to US$578/kW in that same timeframe.
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