By 2040, the global energy storage scale will increase to 2850GWh

According to the latest report by Bloomberg New Energy Finance BNEF, global energy storage installations will double from 9GW/17GWh in 2018 to 1,095GW/2,850GWh
by 2040.

BNEF estimates that a 122-fold boom in fixed energy storage over the next two decades will require $662 billion in investment
.
However, in addition to the 85% reduction in the 2010-18 period, the cost of lithium-ion batteries will fall
further sharply.

BNEF said the cost per kWh of lithium-ion batteries will be further halved by 2030 as demand grows rapidly in two different markets: stationary storage and electric vehicles
.

Yayoi Sekine, energy storage analyst at BNEF and co-author of the report, said: "The two biggest changes this year are that we have raised our investment estimate that energy storage will exceed $40 billion by 2040, and we now believe that most of the new capacity will be utility-scale, rather than household and business capacity
.
”

BNEF's analysis shows that cheaper batteries are available for a growing number of applications
.
These include energy diversion (sending power to the grid in a timely manner, usually when there is a surplus of solar and wind generation), peaking of high-capacity power systems (to cope with spikes in demand), and customers seeking savings to obtain energy bills
by buying power at a cheap time and using them later.

Logan Goldie-Scot, Head of Energy Storage at BNEF, added: "In the short term, renewable energy + storage, especially solar + storage, has become a major driver of
battery manufacturing.
Based on a new contract structure between developers and the grid, this is a new era
of dispatchable renewable energy.
”

According to BNEF's forecast, the world's 10 countries and regions together will account for nearly three-quarters
of the global market.
South Korea was the dominant market in 2019, but it will soon be overtaken, and by 2040, China and the United States will be far ahead
.
The remaining important markets are India, Germany, Latin America, Southeast Asia, France, Australia, and the United Kingdom
.

The power system and the transportation sector are undergoing a fundamental transformation
.
Falling wind, solar and battery costs mean that wind and solar will account for nearly 40% of the world's electricity in 2040, up from 7%
today.
At the same time, passenger electric vehicles could account for one-third of global passenger cars by 2040, up from less than 0.
5% today, adding a huge amount of scale
to battery manufacturing.

Storage needs will increase to balance the variability in the power system, especially as renewable energy generation will account for an increasing proportion, requiring an increasing selection of batteries to manage this dynamic mix
of supply and demand.

The report found that energy storage will become a practical alternative
to new generation or grid system reinforcement.
Total demand for batteries in the stationary storage and power transportation industry is expected to be 4,584GWh by 2040, presenting significant opportunities
for battery manufacturers and miners of constituent metals such as lithium, cobalt and nickel.