US Energy Storage Surges With Second-Highest Quarterly Record

The United States is continuing to break records for energy storage installations across key market segments, according to the latest report by Wood Mackenzie. In the second quarter of 2024, the US developers installed 3,011 MW and 10,492 MWh of energy storage capacity. This marks the second-largest quarterly capacity addition, surpassed only by Q4 2023, when 13,437 MWh were brought online.

The rise in intermittent renewable sources, such as solar and wind, has highlighted the need for storage systems to supply power when it is most required. California, Arizona, and Texas have led the way, accounting for 85% of the country’s total energy storage installations in 2024 so far.

The industry is projected to deploy 12.8 GW and 36.9 GWh of energy storage this year, representing a 42% year-over-year increase compared to 2023. Wood Mackenzie also forecasts steady growth, with energy storage deployments expected to rise at an average annual rate of 7.6% between 2025 and 2028. Furthermore, through 2028, grid-scale storage will add 62 GW, and distributed storage will add 12 GW, with the residential segment representing 80% of distributed battery additions.

Notably, the US administration recently announced a USD 3 billion investment in 25 projects across 14 states, aimed at strengthening domestic production of advanced batteries and battery materials. This initiative is part of a broader effort to bolster the country’s energy storage capabilities and reduce reliance on foreign supply chains. This succeeded the earlier measures of the US government when it committed USD 1.82 billion to 14 projects focused on scaling up commercial facilities for extracting critical battery materials such as lithium and graphite, as well as manufacturing battery components.

The US is also expecting to enable USD 16 billion in total investment for battery manufacturing, processing, and recycling, building on its dual Battery Materials Processing and Battery Manufacturing and Recycling programs.