Batteries and Secure Energy Transitions World Energy Outlook Special Report INTERNATIONAL ENERGY AGENCY The IEA examines the full spectrum of energy issues including oil, gas and coal supply and demand, renewable energy technologies, electricity markets, energy efficiency, access to energy, demand side management and much more. Through its work, the IEA advocates policies that will enhance the reliability, affordability and sustainability of energy in its 31 member countries, 13 association countries and beyond. This publication and any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. Source: IEA. International Energy Agency Website: www.iea.org IEA member countries: IEA association countries: Australia Austria Belgium Canada Czech Republic Denmark Estonia Finland France Germany Greece Hungary Ireland Italy Japan Korea Lithuania Luxembourg Mexico Netherlands New Zealand Norway Poland Portugal Slovak Republic Spain Sweden Switzerland Republic of Türkiye United Kingdom United States Argentina Brazil China Egypt India Indonesia Kenya Morocco Senegal Singapore South Africa Thailand Ukraine The European Commission also participates in the work of the IEA Foreword At the International Energy Agency (IEA), we monitor and analyse the progress of more than 500 energy technologies on a daily basis, providing valuable insights into the trajectory of the global energy sector. This process supports the development of energy policies and fosters dialogue at the highest levels of policy making. In this new report, we provide an in-depth examination of a technology that is a linchpin in delivering clean energy transitions and protecting energy security. Batteries will be critical to achieving the energy goals agreed by nearly 200 countries at the COP28 climate change conference in Dubai, notably tripling renewable energy capacity by 2030, doubling the pace of energy efficiency improvements and transitioning away from fossil fuels. Together with renewables and other clean energy solutions, batteries can ensure reliable and abundant supply of electricity to households and businesses throughout the world. Batteries are already the beating heart of our technology-led societies and essential to the devices, such as phones and computers, that are embedded in modern life. Now, as clean energy transitions pick up pace, the role of batteries is expanding significantly, and so too is our reliance on them. Manufacturers are producing batteries for an ever-growing range of consumer and industrial products as demand expands rapidly, from the drivetrains in electric vehicles to utility-scale power storage in our electricity systems. Going forward, I see batteries having a profound impact on two sectors which are key pillars of the global energy transition – namely transport and power. Improvements in battery technology combined with rapidly falling costs, mean that electric vehicles in many parts of the world are increasingly competitive on price with conventional cars. In the power sector, new battery capacity globally has doubled year-on-year, with 2023 setting a new record for installations. Battery costs have declined by 90% in less than 15 years. And today, utility-scale batteries paired with solar PV are already competitive with new coal in some countries like India and, in the next few years, will be with new natural gas in the United States and new coal in China. IEA. CC BY 4.0. Reducing emissions and getting on track to meet international energy and climate targets will hinge on whether the world can scale up batteries fast enough. More than half the job that we need to do will rely, at least in some part, on battery deployment. Our analysis shows that energy storage more broadly will need to increase sixfold by 2030 to help meet the goals set at COP28, a target that will be met almost exclusively by batteries. Yet, obstacles to progress remain. Costs must continue to come down to drive further uptake across a wide range of sectors. Battery manufacturing capacity has more than tripled in the last three years, but it remains too concentrated in only a few countries, as does the extraction and processing of the critical minerals on which it relies. However, the good news is that new chemistries for batteries will help reduce over-reliance on only a handful of key ingredient