Surge in Renewable Energy Drives Demand for Lead Batteries

New Report Reveals How Lead Batteries are Featured in Chinese Energy Storage Systems

As the global power industry wrestles with the need to expand energy storage to accommodate renewable generation and meet soaring demand for electricity overall, a new CHR Metals Limited report states that countries like China are shifting some focus toward lead batteries over lithium for battery energy storage systems.

“The growth of lead battery energy storage systems in Asia, especially in China, is promising, driven by efforts to reduce fossil fuel use and achieve net-zero goals,” said Dr. Alistair Davidson, director of the Consortium for Battery Innovation. “With the energy storage market expected to exceed 400 GW by 2030, the CHR Metals analysis highlights significant opportunities for lead battery projects regionally and globally.”

Currently, only lithium-ion and lead batteries operate on a scale sufficient to meet demand, representing over 98 percent of the rechargeable battery market through 2030.

Lead batteries, known for their efficiency and reliability, continue to play a vital role in backup power for critical infrastructure, hybrid automotive, and motive power applications. Advanced lead batteries emerge as an ideal solution for energy storage, boasting superior performance, safety, and scalability to align with the U.S. and E.U.'s net-zero emission goals for 2050.

This week’s CHR Metals Limited Report also notes:

• Demand for raw materials, particularly lithium, poses a challenge.
  • Lead batteries are the only other scalable battery technology that can step in to help meet goals.
• There is anticipated substantial growth in lead battery demand if lead batteries capture even a small percentage (5%) of the forecasted BESS installations by 2030, (a 1.7Mt of additional lead demand).
  • Lead-carbon batteries are seen as competitive in terms of performance and life-cycle cost, making them a viable option in the rapidly expanding global energy storage market.
• There remains a critical need for a substantial increase in renewable electrical energy capacity over the next 25 years to achieve net-zero goals.
  • There is staggering growth in battery capacity, especially for electric vehicles, renewable energy storage, and electrical grid transformation.
• In Asia, especially in China, there's a significant focus on lead batteries alongside lithium and other chemistries.
  • China is commissioning several lead battery energy storage facilities, with cost efficiency being a major factor in the selection of lead over lithium batteries. One of the advantages of lead batteries which will offset shorter cycle lives compared to lithium batteries, is that up to 50% of the original cost of lead batteries can be recovered when they are sold for recycling.
  • Notable projects include the world's largest lead-carbon BESS installation in Huzhou, Zhejiang, and other installations in Jiangsu, Yinchuan, Ningxia, and Inner Mongolia.
• Forecasts for battery installations in the Americas and, especially, in Asia exceed those for Europe. 
  • Rystad Energy anticipates annual global BESS installation will exceed 400 GWh by 2030, up from only 43 GWh in 2022. 
  • Over half of new systems in 2030 are forecast to be in Asia.

Contrary to misconceptions, lead batteries stand out as the most recycled and innovative products globally, minimizing the carbon footprint by utilizing recycled materials. Over 97 percent of lead batteries in North America and Europe are collected and recycled, with 85 percent of the recycled lead used in manufacturing new batteries—a testament to the circular economy in action. (Source: Association of Battery Recyclers)

Lead batteries can help deliver on climate-neutral pledges and provide energy resiliency in specific applications.

“Despite ongoing misconceptions, ongoing research and innovation have propelled advanced lead batteries to impressive strides in performance over the past decade,” added Davidson. “These advancements, including improved cycle life, lifetime, and overall energy efficiency, translate into substantial benefits in terms of total cost of ownership and reliability.”

While embracing an overall diversification of energy sources and plans to increase renewables, the versatility and proven performance of advanced lead batteries position them as a scalable and cost-effective solution to meet today's demands and future energy storage needs.