Despite being useful, clean energy is opening new vistas for business leaders and companies worldwide, while making the next trillion-dollar business and revitalising the grid-scale battery sector in the coming years.
Fierce competition in the international market can help battery consumers access them at affordable prices soon, as sodium-ion batteries are a much more attractive alternative than costly lithium-ion batteries due to multiple improved features, especially safety. The hub of global battery production is indeed China, home to six of the world's top ten biggest manufacturers. According to Wood Mackenzie, these powerhouses include mainly the top ten battery manufacturers by global operating capacity.
Chinese companies consist of six out of the total ten companies, including CATL, BYD, EVE Energy, Gotion High-tech, CALB, and REPT. Other key brands include LG ES, SK On, Panasonic, and Samsung SDI.
Those countries that developed quickly, such as the UK, Germany, and others in Europe, compromised on the environment for the sake of rapid progress. Once these developed nations became affluent, they began focusing on improving the environment and addressing hovering hazards. The UK controlled its industrial growth, while Germany invested in technology to make it more environment-friendly and reduce pollution.
Simultaneously, China embarked on similar efforts, focusing first on economic development while ignoring environmental pollution. Heavy reliance on coal for domestic and commercial use helped China achieve new heights of progress before it started concentrating on reducing industrial emissions and improving environmental standards. India is following a similar path, expanding its industries at the cost of environmental degradation, much like the early strategies of the developed world.
After the boom of battery technology companies in China, growing battery startups in the US and Europe are now setting up sodium-ion plants and making significant investments in the sector to capture the world market in the coming years. China, however, has already established dominance. These startups aim to produce low-cost batteries that can store more power for longer periods. One such company, EnerVenue, is commercialising a nickel-hydrogen battery in this respect.
These new technologies are particularly useful for meeting the rising energy demands of data centres, as tech companies are increasingly turning toward renewable and sustainable energy solutions.
The Economist reported that decarbonising the world's electricity supply may require more than just solar panels and wind turbines, which rely on sunshine and wind to generate power. According to the International Energy Agency (IEA), 90 GW of battery storage was installed globally last year, doubling the amount from 2022. Roughly two-thirds of this capacity was for grid use, with the remainder serving other applications such as residential solar. As prices fall and new chemistries emerge, Bain & Company, a consultancy firm, estimates that the market for grid-scale storage could grow from around $15 billion in 2023 to between $200 billion and $700 billion by 2030, and possibly reach $1 trillion to $3 trillion by 2040.
Grid-scale storage is rising rapidly, partly driven by the quick rollout of data centres, which is creating gaps in the grid infrastructure. Longer-lasting batteries with more life cycles can help energy-hungry tech companies meet their demands.
The IEA works closely with governments and industry leaders to shape a secure and sustainable energy future for all. IEA Executive Director Dr Fatih Birol remarked, "Batteries are changing the game before our eyes."
Prof Engineer Zamir Ahmed Awan, head of the Global Silk Route Research Alliance (GSRRA), added that China became fully aware of the environmental costs of pollution 10 to 15 years ago, realising the numerous health issues it could cause. China took difficult but necessary steps, including reducing coal use and upgrading technology to clean energy solutions. The country also provided incentives for industrialists to adopt renewable energy sources like solar and wind, investing heavily in research to lower the cost of these technologies.
At the initial stage, renewable energy was costly, but China's research and mass production efforts made it more affordable. Today, China produces almost one-third of its energy from renewable sources, the highest percentage in the world. China continues to focus on producing low-cost batteries, with researchers working to scale down battery prices while increasing their life cycles.
THE AUTHOR IS A STAFF CORRESPONDENT
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