Energy storage industry set aggressive goals for 2025 — and already crushed them

In a remarkable turnaround, the energy storage industry has exceeded its ambitious goals set nearly a decade ago. The industry aimed to deploy 35 gigawatts of grid-connected batteries in the U.S. by the end of 2025, but by the third quarter of this year alone, 4.7 gigawatts were installed, bringing the total to over 40 gigawatts with more to come before the year concludes, according to reports from Canary Media. The evolution of energy storage has been nothing short of extraordinary. From its humble beginnings, this sector has emerged as a significant contributor to the U.S. power grid, accounting for nearly half of all new renewable energy sources deployed between July and September. The Federal Energy Regulatory Commission highlights that renewables have led the way for new capacity this year. Most of this new storage capacity has been established in states like Arizona, California, and Texas, which have faced grid challenges in recent years. Industry experts believe that the experiences gleaned from these regions could be invaluable for other areas, such as the Midwest and East Coast, where the demand for energy storage solutions is growing, particularly in light of new data center developments. Startups are also recognizing the opportunities within this expanding market. Redwood Materials, co-founded by former Tesla executive JB Straubel, has recently pivoted to focus on repurposing used electric vehicle batteries for large-scale energy storage. The company is set to deploy an impressive 20 gigawatt-hours of battery storage by 2028, following a significant investment of $350 million from backers eager to support its new initiative. Another innovative startup, Base Power, is taking a different approach by leasing batteries to homeowners and aggregating them into a virtual power plant. With a substantial $1 billion raised in October, the Austin-based company aims to construct a battery factory and expand its operations beyond Texas, having already deployed over 100 megawatt-hours of batteries in the state. While lithium-ion batteries remain the dominant technology in current installations, several startups are exploring alternative solutions that promise to reduce storage costs significantly. Sizable Energy is developing a unique method of energy storage using flexible reservoirs in the ocean, while Fourth Power plans to utilize carbon blocks to store heat at extremely high temperatures, aiming for deployment by 2028 at a cost lower than both lithium-ion batteries and traditional natural gas plants. XL Batteries is implementing flow-battery technology at petrochemical sites, allowing for large-scale energy storage using existing infrastructure. Cache Energy is innovating with low-cost calcium hydroxide pellets, capable of storing energy for extended periods with minimal loss. These advancements collectively underscore a burgeoning industry poised for exponential growth. Coupled with solar and wind energy, which are still the most economical forms of new electricity, energy storage could significantly reshape global energy dynamics and transform the U.S. grid.