How is the performance of the energy storage industry today?

According to Canary Media, in the third quarter of 2025, the newly installed battery energy storage capacity in the United States was 4.7 gigawatts; As of now, the headquarters deployment has exceeded 40 gigawatts, and this year has not yet ended. In just eight years, energy storage has grown from a "small role" in the US power grid to an important force in adding new sources of electricity.

In addition, data from the Federal Energy Regulatory Commission shows that from July to September, the newly installed energy storage capacity accounted for nearly half of the total newly installed renewable energy capacity in the power grid; Since the beginning of this year, renewable energy has been the primary source of newly installed power generation capacity.
The newly installed energy storage capacity is mainly concentrated in Arizona, California, and Texas, whose power grids have faced multiple power supply pressures in recent years. Experts say that the experience accumulated in these regions can provide reference for the deployment of power grid energy storage in other areas, including the central and western regions and the east coast. At present, the central and western regions, as well as the east coast, are facing the pressure of power grid capacity due to the huge electricity demand for new data centers.
Start up companies are laying out one after another
Redwood Materials, co founded by former Tesla executive JB Straubel, added a new business line in June this year, focusing on transforming retired electric vehicle batteries into grid grade energy storage batteries. The company has discovered a combined effect of two trends: on the one hand, the batteries sent to its recycling factory still have a large amount of remaining useful life; On the other hand, the battery energy storage industry is currently experiencing explosive growth.
Sequoia Materials plans to achieve a battery energy storage deployment of 20 gigawatt hours by 2028. Investors have acknowledged this plan and have invested an additional $350 million in the company to drive the development of this new business line.
Another startup, Base Power, has adopted a slightly different strategy: renting batteries from home users and integrating these dispersed batteries to build a large virtual power plant. This Austin based startup raised $1 billion in October this year to build a battery factory and expand its business beyond Texas. At present, the company's battery deployment in Texas has exceeded 100 megawatt hours.
Multiple technological paths advancing simultaneously
Although lithium-ion batteries dominate the current new energy storage installations, other startups are working on developing alternative technologies that can significantly reduce energy storage costs.
Sizable Energy is developing a new energy storage method that utilizes flexible liquid storage tanks floating on the high seas to store electrical energy; Fourth Power uses carbon blocks to store ultra-high temperature heat and plans to deploy it by 2028. Its target cost is lower than that of lithium-ion battery energy storage or gas-fired peak shaving power stations; XL Batteries has deployed flow battery technology in petrochemical storage sites, leveraging existing infrastructure to achieve hundreds of megawatt hours of energy storage capacity; In addition, Cache Energy has developed low-cost calcium hydroxide particles that can achieve months of electricity storage with almost no loss.
Overall, all of this indicates that the energy storage industry is in an exponential expansion phase. The combination of energy storage and the current lowest cost sources of new electricity - solar and wind - is expected to reshape the global energy market landscape, and the US power grid will also undergo changes accordingly.