Battery Energy Storage Systems Accelerate Data Center Deployment

Battery Energy Storage Systems

Battery energy storage systems are becoming a practical tool for accelerating data center deployment as hyperscalers search for faster access to power. Industry executives said storage, combined with solar and wind, can help large technology companies bring major facilities online more quickly.

The discussion reflects a growing reality in the power market. Data center demand is rising alongside broader electrification, placing pressure on grids that were not designed for such rapid large-load growth.

Battery energy storage systems help address this problem by providing flexibility where grid connections, peak demand, or local capacity constraints delay projects. For hyperscalers, speed to power is now as important as land, chips, cooling, and fiber connectivity.

Storage Becomes a Bridge Between Hyperscalers and Grid Constraints

Battery energy storage systems can help data centers manage peak demand, reduce grid stress, and support faster deployment when full baseload supply is not immediately available. This makes storage a bridge between large electricity users and constrained power systems.

Invenergy said a mix of solar, wind, and storage can give hyperscalers strong speed-to-power advantages while remaining affordable. That combination is increasingly attractive because data centers need large volumes of electricity but also face public scrutiny over power prices.

The affordability issue is becoming more sensitive. US electricity prices rose by 6.3% in January, and rising demand from data centers is one of the factors adding pressure. If households feel they are paying more while large-load users secure cheaper power, the political risk around data center growth will increase.

Flexible Power Models Could Reshape Battery Demand

Technology companies are responding with a wider power strategy. Instead of relying only on large central power plants, they are looking at solar, wind, on-site batteries, demand response, and distributed storage.

Google said that in locations where peaking capacity is the main issue, faster solutions may include ramping down for short periods, switching to on-site batteries, or paying other customers to install batteries in their homes. This approach turns batteries into grid flexibility assets, not only backup systems.

For the materials supply chain, this matters because data center growth could become a stronger demand driver for batteries, lithium, graphite, iron phosphate materials, copper, aluminium, transformers, power electronics, and grid equipment. As AI infrastructure scales, battery storage will increasingly sit at the intersection of digital infrastructure and energy security.

The Metalnomist Commentary

Battery energy storage systems are moving from optional backup equipment to strategic infrastructure for hyperscaler growth. The next bottleneck for AI data centers may not be computing hardware alone, but the ability to secure flexible, affordable, and politically acceptable power.

Tesla Launches Shanghai Megapack Energy Storage Battery Factory

Tesla

In an exciting move towards sustainability and the acceleration of global energy transition, Tesla has officially launched its Megapack energy storage battery gigafactory in Shanghai. This new facility is a significant step in Tesla’s efforts to expand its energy storage systems globally, marking its first production unit for energy storage outside the United States.

Gigafactory’s Vision and Production Capacity

The factory is located in the Lin-gang Special Area of China’s Shanghai Pilot Free Trade Zone, with a planned production capacity of 10,000 Megapack units per year. This capacity equates to 40 GWh of energy storage. Tesla produced its first Megapack unit in February 2024, and production is expected to ramp up in the first quarter of the year. The company’s expansion of Megapack manufacturing is crucial in meeting the growing demand for energy storage systems as part of global efforts to transition to renewable energy sources.

Innovative Megapack Technology and Tesla’s Global Impact

The Megapack, which was first launched in 2019, can store up to 3,900 kWh of electricity per unit. This capacity is equivalent to the energy storage needs of 62 Model 3 electric vehicles (EVs). Designed to serve as large-scale energy storage solutions, the Megapack is ideal for battery storage power stations and can help stabilize grids reliant on renewable energy sources. Tesla’s goal is not just to create electric vehicles but to be a key player in the global energy transition, producing innovative energy storage technologies that support renewable power generation.

Tesla’s Expansion in Global Energy Storage Systems

This Shanghai-based gigafactory is Tesla's first energy storage manufacturing facility outside of the United States. Tesla’s California factory, which started production earlier, has a capacity of 40 GWh per year, producing around 200 Megapack units weekly. With the Shanghai factory now operational, Tesla aims to scale its energy storage solutions globally, facilitating the transition to sustainable energy worldwide. The company also reported a significant 113% increase in energy storage capacity in 2024, reaching 31.4 million kWh, surpassing the total capacity of the past three years combined.

Tesla’s ambition is clear. As the company looks to meet the increasing demand for energy storage solutions, it highlights the potential for Megapacks to play a critical role in energy generation and storage. As Tesla notes, just 0.1% of China’s Taklimakan Desert could power the entire nation for a year with the energy stored in these systems.

Conclusion: A Global Energy Shift on the Horizon

Tesla’s commitment to scaling energy storage production marks a pivotal moment in the push towards renewable energy. With the Shanghai gigafactory now in full production, the company is well-positioned to meet the rising global demand for energy storage batteries. As shipments of energy storage systems continue to grow, Tesla's innovations promise to be a crucial component in the energy transition, helping to reduce reliance on fossil fuels and ensuring a more sustainable future.

Cordelio Power Acquires 1GWh of Battery Energy Storage Systems from Fluence Energy

Battery Energy Storage Systems (BESS)

Canadian independent power producer Cordelio Power has secured over 1GWh of battery energy storage systems (BESS) from Fluence Energy, marking a significant move in its energy storage portfolio. This purchase is aimed at supporting several BESS projects in Cordelio's 2026-2027 pipeline, which are expected to contribute to North America's green energy transition.

Strategic Expansion in Battery Energy Storage

Fluence Energy, a prominent US energy storage provider, was chosen by Cordelio Power for its cutting-edge storage technology. Fluence boasts a US-based supply chain, ensuring that no Chinese products are involved, which aligns with Cordelio's commitment to secure and sustainable energy solutions. However, the financial details of this acquisition and the specifics of the upcoming projects remain undisclosed.

Cordelio Power is actively expanding its presence in the energy storage market, focusing on large-scale projects designed to enhance grid stability and support renewable energy sources. The 1GWh purchase will be integral to the successful commissioning of multiple BESS projects scheduled for 2026-2027.

Key Projects in the US Pipeline

In addition to the acquisition of storage systems, Cordelio has secured offtake agreements for two major BESS facilities in the western US. The first is the Greenwater project, a 200MW, 800MWh facility located in Pierce County, Washington. This project will be developed in partnership with Puget Sound Energy. The second is the Pioneer project in Yuma County, Arizona, a larger 300MW, 1,200MWh project, set to be developed in collaboration with Arizona Public Service.

These projects highlight Cordelio's growing role in providing reliable energy storage solutions that complement renewable energy generation, paving the way for a cleaner and more resilient energy grid.

Global Energy Storage Market Expands as China Drives Record Growth

China Energy Storage

Global energy storage market growth accelerated in 2025, with China remaining the main force behind new capacity additions and technology diversification. The country’s cumulative operating power storage capacity reached 213.3GW by the end of the year, accounting for 43% of the global total.

China energy storage growth was especially strong in new-type energy storage, which includes lithium-ion batteries and vanadium redox flow batteries but excludes pumped hydro. China’s new-type storage capacity rose to 144.7GW, representing more than two-thirds of its total storage fleet and 51.9% of global new-type installations.

The global energy storage market also became more diversified. Pumped hydro’s share of global operating capacity fell below 50% for the first time, while new-type storage expanded rapidly to 278.7GW/687.5GWh.

China Leads Storage Deployment as VRFB Projects Gain Share

China’s energy storage sector remained dominated by lithium-ion batteries in 2025. However, lithium-ion’s share slipped slightly as several large long-duration storage projects using all-vanadium redox flow battery technology came online.

This shift matters because grid storage demand is no longer only about short-duration battery systems. Longer-duration applications are gaining relevance as renewable penetration rises and power systems require more flexibility, peak shifting and grid stability.

Independent energy storage became China’s main application model, accounting for around 60% of total installed capacity. This shows that storage is increasingly being deployed as standalone grid infrastructure, not only as an accessory to solar or wind projects.

Chinese manufacturers also strengthened their global position. Sungrow, Tesla, CRRC Zhuzhou Institute, BYD and Envision Energy ranked as the world’s top five energy storage system shipment providers in 2025, highlighting the growing concentration of supply among large integrated players.

Lithium Demand Rises as Storage Becomes a Core Battery Market

The global energy storage market reached 496.2GW of cumulative operating power storage capacity by the end of 2025, up 33.3% from the previous year. New installations hit a record 123.9GW, led by China, the US and Europe, while the Middle East and Latin America gained momentum.

The US added 18.4GW/48.3GWh of new-type storage capacity in 2025, while Europe added 15.4GW/32.1GWh. These figures show that storage growth is becoming global, even though China remains the dominant scale market.

Energy storage is also reshaping battery materials demand. The sector accounted for 25% of global lithium demand in 2025, up sharply from 5% in 2020, making storage one of the most important demand drivers for lithium carbonate, lithium iron phosphate materials and battery supply chains.

Stronger storage demand helped push battery-grade lithium carbonate prices to 158,000-168,000 yuan/t at the end of March, up 120% from a year earlier. This confirms that stationary storage has moved from a secondary battery market into a major force in lithium pricing.

The Metalnomist Commentary

China’s dominance in energy storage shows how quickly battery supply chains can scale when policy, manufacturing and grid demand align. The next phase will test whether lithium, vanadium and power equipment supply can keep pace with global storage deployment.

NextEra Battery Storage Contracts Rise as US Power Demand Accelerates

NextEra Energy

NextEra battery storage contracts increased in the first quarter as the US utility group added 1.3GW of battery storage-based agreements. The additions formed part of 4GW of renewable and storage originations, alongside 2.2GW of solar and 0.5GW of wind.

NextEra battery storage contracts are rising because US electricity demand is growing faster and customers need capacity that can be deployed quickly. The company said demand for power is not slowing and that speed to power has become essential.

NextEra battery storage contracts also show how storage is becoming a core grid resource, not only a supplement to solar and wind. Battery systems can support peak demand, improve grid reliability and provide flexible capacity as data centres, electrification and industrial load growth increase pressure on power networks.

The company added more battery storage than in the first quarter of 2025, when it originated 0.9GW of storage within 3.2GW of renewable energy and storage capacity.

Storage Pipeline Supports Fast Grid Capacity Growth

NextEra has identified four main growth routes for battery storage. These include standalone projects, co-located storage at existing renewable sites, storage as a grid solution and expansion of existing projects from four-hour to eight-hour duration.

This is important because storage demand is becoming more diverse. Standalone batteries can provide rapid capacity support, while co-located systems can improve the value of solar and wind generation.

Longer-duration battery expansion is also strategically relevant. Moving from four-hour to eight-hour systems can help utilities manage evening demand peaks, renewable intermittency and grid congestion.

NextEra’s standalone and co-located storage pipeline exceeds 110GW, excluding expansion opportunities. That scale gives the company one of the strongest platforms in the US storage market.

The growth reflects a broader shift in power infrastructure. Utilities and large customers increasingly need fast capacity additions because new gas plants, transmission lines and conventional generation projects often face long development timelines.

Battery storage is not a full replacement for all forms of generation. But it is becoming one of the fastest tools available to respond to near-term power demand growth.

Secured Supply Through 2029 Reduces Execution Risk

NextEra said it has secured domestic supply for solar panels and battery storage through 2029 at competitive prices. This reduces exposure to trade disruption, tariff changes and equipment shortages.

Supply security matters because battery storage projects depend on reliable access to cells, modules, inverters, power conversion systems, transformers and grid interconnection equipment.

South Korean battery manufacturer Samsung SDI signed a deal in March 2025 to supply 6.3GWh of battery energy storage systems to NextEra. That agreement supports the company’s ability to execute projects while demand rises.

For battery materials, the growth of utility-scale storage strengthens demand for lithium, graphite, iron phosphate cathode materials, copper, aluminium and power electronics. LFP batteries are especially important in stationary storage because of cost, safety and cycle-life advantages.

NextEra’s first-quarter profit rose to $2.18bn on sales of $6.7bn, up from $833mn in profit and $6.25bn in sales a year earlier. Stronger financial performance gives the company more room to support its renewables and storage buildout.

The industrial significance is clear. Battery storage is becoming a strategic capacity product for the US power system, especially as electricity demand from data centres, manufacturing and electrification continues to rise.

The Metalnomist Commentary

NextEra’s storage growth shows that batteries are becoming part of the core power infrastructure toolkit. The next constraint will not be customer demand, but whether supply chains, interconnection queues and grid equipment can keep pace.

Tesla LGES Michigan Battery Plant Strengthens US LFP Supply for Energy Storage

LGES, Michigan Battery Plant

Tesla LGES Michigan battery plant plans mark a major step in the buildout of US lithium iron phosphate battery capacity. Tesla and LG Energy Solution have signed a supply agreement to develop a $4.3 billion LFP battery cell facility in Lansing, Michigan.

The plant is scheduled to begin production in 2027. It will supply battery cells for Tesla’s Megapack 3 energy storage systems, which the company plans to produce at its Houston megafactory.

The Tesla LGES Michigan battery plant also reflects a wider shift in battery demand. Stationary energy storage is becoming a larger driver of cell procurement as power grids absorb more renewable energy, data center demand, and industrial electrification.

Lansing Facility Repositions Former EV Capacity Toward Grid Storage

The Lansing project carries strategic significance because the facility previously formed part of a General Motors and LGES joint venture. LGES acquired GM’s stake for $2.1 billion after GM reduced electric vehicle-related capacity and investment.

This change shows how battery assets can be redirected as market priorities shift. EV demand remains important, but utility-scale storage is becoming a stronger growth channel for LFP chemistry.

The 50 GWh per year facility gives Tesla a large domestic cell supply base for Megapack 3. It also supports Tesla’s plan to begin Megapack 3 and Megablock production in Houston in 2026.

Tesla

LFP Chemistry Gains Ground in US Energy Storage Supply Chains

LFP battery cells are becoming increasingly important for energy storage systems because they offer cost, cycle life, and safety advantages for stationary applications. For Tesla, securing LFP supply in the US reduces exposure to imported cells and supports larger energy storage deployments.

The Tesla LGES Michigan battery plant also strengthens LGES’s position in the US battery value chain. By converting a former EV-focused site into a major LFP supply point, LGES can serve a market where demand is tied to grid infrastructure rather than only vehicle sales.

Tesla’s Megapack business is already scaling. The company sold $430 million of Megapack products in 2025 to xAI, its sister company and Elon Musk’s artificial intelligence startup, highlighting the link between energy storage and rising power demand from AI infrastructure.

The Metalnomist Commentary

This agreement shows that battery supply chains are no longer being shaped only by electric vehicles. Grid storage, AI power demand, and domestic manufacturing policy are becoming equally powerful forces.

Samsung SDI BESS Supply Deal Strengthens US Energy Storage Battery Chain

Samsung SDI BESS

Samsung SDI BESS supply deal activity is accelerating in the US as demand for grid-scale battery storage continues to rise. The South Korean battery manufacturer has secured a 1.5 trillion won, or about $1 billion, contract to supply BESS batteries to a US energy company over four years.

The Samsung SDI BESS supply deal will run from 2026 to 2029. The batteries will be supplied in phases, supporting the rapid buildout of US battery energy storage systems as utilities, renewable developers, and infrastructure operators seek more flexible power capacity.

The agreement also strengthens Samsung SDI’s US manufacturing strategy. The batteries will be produced at StarPlus Energy’s plant in Indiana, a joint venture between Samsung SDI and Stellantis.

Indiana Production Links Battery Storage to Domestic Manufacturing

The StarPlus Energy facility gives Samsung SDI a local production base for the US energy storage market. This matters because US customers increasingly value domestic or regionally anchored battery supply chains, especially for energy infrastructure projects.

Initial deliveries will use nickel-cobalt-aluminum batteries. This chemistry gives Samsung SDI a route to serve early BESS demand while preparing for broader chemistry diversification.

Later expansion will include lithium iron phosphate batteries. LFP batteries are becoming more important in stationary storage because cost, safety, cycle life, and scale matter more than maximum energy density in many grid applications.

LFP Expansion Signals a Wider Shift in US BESS Demand

The Samsung SDI BESS supply deal follows another major LFP agreement signed last December with an unnamed US energy infrastructure company. That earlier contract was valued at two trillion won, or about $1.33 billion.

Together, the deals show that Samsung SDI is moving more aggressively into the US battery energy storage systems market. The company is no longer positioned only around electric vehicle batteries, but also around grid storage and power infrastructure.

This shift has important materials implications. BESS growth will increase demand for lithium, iron phosphate materials, nickel, cobalt, aluminum, copper, graphite, separators, electrolytes, and power electronics. It will also intensify competition among Korean, Chinese, Japanese, and US-linked battery supply chains.

The Metalnomist Commentary

Samsung SDI’s latest contract confirms that US battery demand is shifting from EV-only growth toward a broader energy infrastructure cycle. For battery makers, chemistry flexibility and local production are becoming as important as scale itself.

XFH Anode Material Sales Rise as China Battery Demand Expands

Anode Material

XFH anode material sales increased in 2025 as demand from China’s lithium-ion power battery and energy storage battery industries continued to grow. Shanghai XFH Technology sold 83,885t of anode materials during the year, up 22% from 2024.

XFH anode material sales outpaced production growth, showing stronger downstream offtake from battery manufacturers. The company’s anode material output rose by 11% on the year to 83,426t.

XFH anode material sales also lifted revenue. The company’s anode material revenue rose by 21% to 1.7bn yuan, supported by higher shipment volumes into battery supply chains.

The result reflects continued expansion in China’s battery ecosystem. Power battery shipments exceeded 1,000GWh in 2025, up by more than 50% from a year earlier, while energy storage battery shipments rose by 85% to 630GWh.

Suining Complex Expands XFH’s Anode Capacity

XFH increased anode material production capacity to 114,660 t/yr in 2025, up 27% from the previous year. The increase followed the production launch of its 60,000 t/yr complex in Suining, Sichuan province, at the end of 2025.

The new capacity gives XFH more room to serve fast-growing battery demand. Anode materials are a core input for lithium-ion batteries, influencing charging performance, cycle life, safety and energy density.

China’s rapid growth in power batteries and storage batteries is driving expansion across the anode supply chain. Producers are adding capacity to meet demand from electric vehicles, grid storage, industrial storage systems and consumer battery applications.

The Suining project also strengthens XFH’s position in a market where scale, cost control and customer qualification are critical. Larger capacity can improve operating efficiency, but it also requires stable demand to avoid inventory and pricing pressure.

Energy Storage Growth Supports Anode Demand

Energy storage is becoming an increasingly important driver for China anode materials. Storage battery shipments grew faster than power batteries in 2025, rising by 85% from a year earlier.

This matters because energy storage systems require large volumes of battery materials even when they have different performance priorities from electric vehicles. Cost, cycle life, safety and supply reliability are especially important in storage applications.

Power battery demand remains the largest driver. China’s battery shipments above 1,000GWh show the scale of the domestic EV and battery manufacturing base.

For anode producers, the opportunity is large but competitive. Demand growth supports shipments, but capacity expansion across China can still create margin pressure if supply grows faster than customer orders.

XFH’s stronger sales and output show that qualified anode producers remain tied closely to downstream battery expansion. The next challenge will be maintaining utilisation and profitability as China’s battery materials sector continues to scale.

The Metalnomist Commentary

XFH’s growth shows that China’s battery materials chain is still expanding quickly, especially in anodes. However, rising capacity means producers must compete on qualification, cost and customer access, not only shipment growth.

Zhongke Anode Material Sales Surge as Energy Storage Demand Accelerates

Zhongke

Zhongke anode material sales rose sharply in 2025 as China’s lithium-ion battery sector expanded across new energy vehicles and power storage. Hunan Zhongke Electric sold 363,253t of anode materials during the year, up 62% from 2024.

Zhongke anode material sales were supported by strong downstream demand and higher operating rates. The company’s output increased by 66% to 378,469t, reflecting a rapid scale-up in response to battery market growth.

Zhongke anode material sales also lifted revenue. Revenue from anode materials rose by 60% to 7.99bn yuan, broadly in line with the increase in shipment volumes.

The result shows how anode materials remain one of the key beneficiaries of battery expansion. Demand is no longer driven only by electric vehicles. Grid storage, industrial storage and AI-related power demand are becoming increasingly important.

Capacity Utilisation Tightens as China Battery Demand Expands

Zhongke’s anode material capacity reached 348,683 t/yr in 2025, up 46% from a year earlier. The increase followed equipment and technology upgrades across its production base.

Capacity utilisation rose to 108.6% from 95.7% in 2024. This shows that Zhongke was operating above nameplate capacity as demand outpaced available production capability.

The company is now expanding further. A third-phase project at its Zhaotong site in Yunnan province is under construction and will add 100,000 t/yr of anode material capacity by the end of 2026.

Zhaotong has become a key growth platform. The first phase, with 15,000 t/yr of capacity, started production in April 2020. The second phase, with 100,000 t/yr of capacity, began operations in March 2024.

Zhongke is also planning a 300,000 t/yr anode material complex in Luzhou, Sichuan province. This would further strengthen its position in China’s graphite anode supply chain.

The expansion reflects a broader industry trend. Anode producers are adding capacity to serve battery makers that need reliable supply, stable quality and lower-cost materials for high-volume cell production.

Overseas Expansion Targets Storage and Non-China Customers

Zhongke is also building a 100,000 t/yr anode material plant in Tangier, Morocco. The project targets customers outside China and reflects the growing need for regionalised battery material supply chains.

Morocco offers strategic value because it is close to European markets and has become more attractive for battery-related investment. For Chinese anode producers, overseas capacity can help serve customers facing localisation, trade and supply-chain security requirements.

Energy storage is becoming a major long-term demand driver. Global energy storage battery shipments reached 651.5GWh in 2025, up 76.2% from a year earlier. Chinese companies accounted for 614.7GWh, or 94.4% of global shipments.

EV Tank expects global energy storage battery shipments to exceed 2TWh by 2030. If this forecast materialises, anode material demand will continue rising across China and overseas markets.

Policy is also supporting growth. China is moving new energy storage from mandatory allocation toward a more market-oriented system, including capacity pricing support for independent grid-side storage.

AI data centres are adding another demand layer. Rapid growth in electricity consumption from AI infrastructure is increasing the need for power storage, grid stability and backup capacity.

Europe is also expanding storage under energy security strategies. EU member states installed 27.1GWh of new battery energy storage systems in 2025, up 45% from the previous year.

For Zhongke, this demand mix supports a larger and more international anode strategy. The company is positioning itself to serve China’s dominant battery ecosystem while preparing for overseas demand linked to storage, EVs and grid resilience.

The Metalnomist Commentary

Zhongke’s growth shows that anode materials are moving from an EV-driven market into a broader energy infrastructure market. The next competitive phase will depend on overseas localisation, graphite supply security and the ability to serve storage demand outside China.

US Turkey LFP Battery Partnership Targets 7GWh Production by 2027

Our Next Energy

US Turkey LFP battery partnership emerged as Our Next Energy (ONE) contracted Turkish manufacturer Pomega Energy Storage Technologies to produce 7GWh of lithium iron phosphate battery cells. The strategic US Turkey LFP battery collaboration targets 2GWh production in 2026 escalating to 5GWh in 2027, supporting ONE's energy storage solutions for utility, commercial, and industrial customers while bridging manufacturing capacity before domestic US production commences.

Strategic Manufacturing Timeline Bridges International and Domestic Production

US Turkey LFP battery production will focus on ONE's 314Ah LFP battery cells manufactured at Pomega's Ankara facility. The Turkish facility maintains 3GWh installed capacity and currently undergoes qualification for global export markets. This partnership provides immediate manufacturing access while ONE develops its Michigan-based grid battery production line scheduled for 2027 operations.

Meanwhile, the collaboration enables ONE to meet near-term customer demands without delayed market entry. Founder and CEO Mujeeb Ijaz emphasized the partnership's role in supporting customer commitments during the transition to US-based manufacturing capabilities. The phased approach reduces market risks while ensuring continuous supply chain operations across international and domestic facilities.

Turkish Manufacturing Hub Supports Global Battery Supply Chains

However, Pomega's Ankara facility represents Turkey's growing position in global battery manufacturing ecosystems. The facility's 3GWh capacity and export qualification process demonstrate Turkish manufacturing capabilities in advanced energy storage technologies. Turkey's strategic geographic position provides advantageous access to European, Middle Eastern, and Asian markets for battery exports.

Therefore, the partnership leverages Turkey's industrial infrastructure while supporting ONE's expansion strategy across utility-scale energy storage markets. Turkish manufacturing costs and skilled workforce availability create competitive advantages for large-scale battery production. The collaboration also strengthens US-Turkey commercial relationships in critical technology sectors driving clean energy transitions.

Market Positioning for Utility-Scale Energy Storage Growth

Furthermore, the LFP battery production targets utility, commercial, and industrial energy storage applications experiencing rapid market expansion. Lithium iron phosphate technology offers safety and cost advantages compared to alternative battery chemistries, particularly for large-scale stationary storage installations. The 314Ah cell specification aligns with industry requirements for grid-scale energy storage systems.

As a result, ONE's dual-facility strategy positions the company competitively across North American and international markets during the critical 2026-2027 period. The Turkish production capacity provides flexibility while Michigan facility development progresses, ensuring market presence during peak demand growth. This geographic diversification reduces supply chain risks while maximizing market opportunities across multiple regions.

The Metalnomist Commentary

ONE's partnership with Turkish manufacturer Pomega exemplifies how US battery companies strategically leverage international manufacturing partnerships to bridge capacity gaps before domestic production scaling, particularly important as global LFP demand accelerates faster than domestic manufacturing development. The collaboration demonstrates Turkey's emerging role as a strategic manufacturing hub for critical battery technologies, positioning the country advantageously within global energy storage supply chains serving both European and American markets.

Texas BESS Project Unites OCI, CPS Energy, and LG Energy Solution

CPS Energy

OCI Energy, CPS Energy, and LG Energy Solution launched a major Texas BESS project collaboration. The 120MW/480MWh Alamo City battery storage system will stabilize Bexar County's power grid. This strategic Texas BESS project partnership advances San Antonio's energy resilience goals significantly.

LGES Vertech Supplies Advanced Battery Technology

LG Energy Solution's US division Vertech will provide cutting-edge battery systems and management technology. OCI Energy develops the project while CPS Energy secures the storage capacity offtake agreement. Meanwhile, this partnership raises CPS's total contracted battery storage to 520MW. The facility targets operational status by late 2026.

The Texas BESS project supports grid stability during peak electricity demand periods. Furthermore, the 20-year agreement ensures long-term energy security for San Antonio residents. This development aligns with Texas's growing energy storage infrastructure requirements.

Strategic Impact on Texas Energy Transition

CPS Energy's Vision 2027 plan incorporates this battery storage system comprehensively. The initiative adds 1,710MW natural gas, 730MW solar, and 84MW wind capacity. Therefore, energy storage becomes crucial for renewable integration and grid balancing. The project demonstrates Texas's commitment to diversified energy solutions.

Battery energy storage systems transform Texas's electricity market dynamics fundamentally. Moreover, Korean battery technology strengthens US-South Korea clean energy partnerships. As a result, San Antonio gains enhanced grid resilience and sustainability capabilities. This Texas BESS project model could inspire similar developments statewide.

The Metalnomist Commentary

LG Energy Solution's participation highlights Korean battery manufacturers' aggressive US market expansion amid IRA incentives. The 480MWh capacity represents significant lithium-ion battery demand, potentially requiring 400-500 tonnes of lithium carbonate equivalent. This project exemplifies how energy storage drives critical mineral demand while enabling renewable energy integration at scale.

Ford BESS market entry accelerates after $19.5bn Ford EV write-down

Ford BESS

Ford BESS market entry is now central to Ford Motor’s updated electrification strategy. The automaker launched a battery energy storage systems unit as it prepares a Ford EV write-down totaling $19.5bn. As a result, Ford is repositioning capital toward grid infrastructure and data center demand.

Ford said weak demand and high costs pushed it to shelve plans for large EVs. However, the company still targets a more electrified fleet mix by 2030. Therefore, Ford BESS market entry signals a pivot toward returns that look steadier than passenger EV margins.

Ford battery energy storage systems business targets data centers and grids

Ford battery energy storage systems business will lean on lithium-iron-phosphate technology. Ford will also use its wholly owned plants in Kentucky and Michigan. Meanwhile, the company aims to serve energy infrastructure upgrades and expanding data center loads.

Ford plans to begin shipping BESS products in 2027. The company expects annual capacity to reach 20GWh. As a result, Ford battery energy storage systems business could become a meaningful industrial demand driver for LFP inputs and power electronics.

EV strategy resets around hybrids and EREVs

Ford widened its EV definition to include hybrids, EREVs, and BEVs. An EREV uses a gasoline engine to recharge the battery, not drive the wheels. Therefore, EREVs can extend range without frequent plug-in charging.

Ford expects electrified vehicles to represent about 50% of global production by 2030. That compares with roughly 17% today. Meanwhile, Ford EV write-down reflects how quickly automakers must reassess platform bets when demand softens.

Ford also ended production of the current-generation F-150 Lightning. The company now plans to adopt EREV architecture for the next generation. As a result, Ford aligns product planning with consumer range expectations and cost discipline.

The Metalnomist Commentary

This shift ties automotive manufacturing closer to stationary power markets. However, BESS success will depend on execution, sourcing, and project-cycle discipline. Therefore, Ford’s move could reshape LFP supply competition with established storage players.

Rivian Second-Life Battery Storage Project Links EV Packs to Grid Reliability

Rivian, Redwood

Rivian second-life battery storage is moving into commercial use after the US electric-vehicle maker agreed to deploy repurposed battery packs through Redwood Materials at its Normal manufacturing plant in Illinois. The project will use more than 100 used Rivian battery packs to provide 10 MWh of dispatchable battery energy storage.

The Rivian second-life battery storage project gives retired EV packs a second use before recycling. Redwood Materials will integrate the packs into a Redwood Energy system for on-site use at Rivian’s manufacturing facility.

Rivian second-life battery storage also reflects a wider shift in the battery value chain. Automakers and recyclers are looking for ways to extract more value from battery packs before recovering lithium, nickel, cobalt, copper, aluminium and other materials.

Redwood Turns Used EV Packs Into Stationary Storage

Redwood will receive EV battery packs from Rivian and convert them into a battery energy storage system for the Normal plant. The system will help reduce energy costs and support local grid reliability.

Second-life batteries are useful because EV packs can still retain meaningful capacity after vehicle use. They may no longer meet automotive performance requirements, but they can still serve stationary storage applications.

This creates a bridge between mobility and grid infrastructure. A battery pack can first support vehicle electrification, then provide stationary power, and later enter recycling for critical material recovery.

Redwood receives more than 20 GWh/yr of batteries, giving it a large feedstock base for both reuse and recycling. The company said it can deploy BESS projects in as little as six months, which matters as power demand rises quickly.

Data Center Power Demand Raises Storage Value

Rivian has attracted investors such as Google, which are seeking faster access to power solutions for artificial intelligence data center growth. This connection shows why second-life batteries are becoming more strategically relevant.

AI data centers need reliable, flexible and rapidly deployable power. Battery energy storage systems can help manage peak demand, improve resilience and reduce pressure on grids facing new large-load connections.

Repurposed EV batteries could become a lower-cost option where speed matters more than maximum energy density. They may also reduce waste and delay the need for immediate material recycling.

For the metals supply chain, this creates a more circular model. Battery materials stay in productive use longer, while recyclers build stronger long-term access to end-of-life packs and future recovered metals.

The Metalnomist Commentary

Rivian and Redwood are showing how EV batteries can become grid assets before they become recycling feedstock. The strategic value lies in extending battery life, lowering storage costs and securing future material recovery in one integrated loop.

BYD Signs World’s Largest Energy Storage Deal with Saudi Electric Power

BYD Lithium Battery

Landmark lithium battery contract supports Saudi Arabia’s 2030 renewable energy target

Chinese energy storage leader BYD has signed a landmark contract to supply 12.5GWh of energy storage systems (ESS) to Saudi Electric Power. This agreement now marks the largest single ESS contract globally by capacity, according to BYD’s announcement on 14 February.

The new deal builds on BYD’s prior delivery of 2.6GWh to Saudi Electric Power, bringing the total supply to 15.1GWh. The two companies did not disclose the contract timeline. However, BYD confirmed that the agreement will significantly support Saudi Arabia’s Vision 2030, which targets 50% renewable energy integration.

BYD scales global reach with LFP-based ESS technologies

BYD began deploying lithium iron phosphate (LFP) battery storage systems 17 years ago. Since then, it has completed over 350 energy storage projects worldwide, supplying more than 75GWh to global markets.

As of 2024, BYD's ESS and power battery installations reached 194.7GWh, up 29% year-on-year. Of that, 135.02GWh was power battery installation alone, based on data from the China Automotive Battery Innovation Alliance.

These results further establish BYD as a global ESS leader, particularly as Chinese companies accounted for 93.5% of global energy storage shipments last year. In total, global energy storage battery shipments hit 369.8GWh in 2024—a 65% year-on-year increase.

Energy storage drives Saudi diversification efforts

The partnership between BYD and Saudi Electric Power aligns with the kingdom’s strategic push toward energy diversification and grid modernization. As Saudi Arabia ramps up utility-scale solar and wind projects, the need for large-scale battery storage grows rapidly.

BYD’s advanced LFP technology offers long cycle life, thermal stability, and safety—making it ideal for the desert climate and high-demand grid applications in the region. This deal positions BYD as a critical technology supplier in Saudi Arabia’s clean energy roadmap.

China industrial energy storage surges as metallurgical plants seek reliable power

Metallurgical plants

China industrial energy storage is rapidly expanding as metallurgical and chemical plants pair rooftop solar with behind-the-meter batteries. China industrial energy storage is growing on the back of record solar additions and rising concerns over power curtailments. As a result, China industrial energy storage is emerging as a key pillar of corporate decarbonisation and energy security strategies.

Metallurgical users lead China industrial energy storage build-out

China’s installed solar capacity reached 1,130GW by the end of September, up 46pc year on year. Meanwhile, user-side energy storage additions hit 0.24GW and 0.49GWh that month, still modest but growing quickly. Industrial and commercial customers accounted for more than 95pc of these user-side systems, underlining where the strongest business case now lies.

Projects from metallurgy, chemical and textile companies made up 73pc of new user-side capacity. This confirms that carbon reduction and power reliability are now core drivers of China industrial energy storage. Heavy users are installing co-located solar PV and batteries to cut emissions, stabilise operations and hedge against grid disruptions. For metals producers, such systems can protect continuous furnaces and electro-intensive processes from costly outages.

LFP batteries dominated the new capacity, accounting for 99.96pc of installations. However, a 90kW, 180kWh sodium-ion system also came online for an industrial user, signalling gradual diversification. Behind-the-meter solar-plus-storage projects allow factories to maximise on-site solar output and store surplus for peak hours. They also reduce exposure to curtailment and potential policy shifts in grid pricing.

Regional hotspots and scaling trajectory for China industrial energy storage

User-side energy storage growth is highly regional. Fifteen provinces commissioned new projects in September, with eastern hubs leading activity. Eastern China represented 71pc of new capacity and 43pc of project numbers, reflecting dense industrial clusters and stronger grid constraints. Jiangsu contributed nearly half of national new capacity, while Zhejiang led on project count with more than 20pc.

Zhejiang, Guangdong and Jiangsu together recorded more than 740 new user-side projects. Project numbers declined by 9pc year on year, yet total capacity jumped 68pc. This shift shows a clear move toward larger, higher-capacity China industrial energy storage systems. Bigger battery blocks better match the load profiles of smelters, rolling mills and chemical complexes.

Overall, China commissioned 3.08GW and 9.08GWh of new energy storage in September, including utility-scale systems. That represented annual growth of 166pc and 200pc, respectively. For the third quarter, new capacity reached 9.16GW and 25.52GWh, up 10pc and 24pc year on year. Installations between January and September already equalled 74pc of the 2025 full-year total, suggesting this year will exceed last year’s deployment. This trajectory ensures China industrial energy storage will remain a central pillar of the country’s broader storage boom.

The Metalnomist Commentary

China’s metals and chemicals producers are quietly driving a structural shift toward on-site solar-plus-storage. For industrials facing both decarbonisation pressure and fragile grid reliability, user-side batteries offer a rare win-win. The next test will be whether policy and market design can keep pace with the speed of industrial adoption.

LG Energy Solution Secures 7.5GWh ESS Deal with Excelsior for U.S. Market

LG Energy Solution

LG Energy Solution (LGES) has signed a multi-year contract to supply 7.5GWh of integrated energy storage systems (ESS) to Excelsior Energy Capital, a U.S.-based renewable energy infrastructure investor. The deal, set to take effect in 2026, marks another significant step in LGES’s expansion in the U.S. grid-scale battery storage market.

The ESS systems will be manufactured in the United States using LGES’s containerized battery solution, incorporating lithium iron phosphate (LFP) long cells to enhance energy efficiency and safety. The financial details of the transaction have not been disclosed.

U.S. Content Compliance and Service Integration

The ESS units will be designed to meet U.S. content requirements, reinforcing LGES’s commitment to localizing battery production in compliance with Inflation Reduction Act (IRA) incentives. The company’s subsidiary, LGES Vertech, will oversee integration and lifecycle services for the energy storage systems.

Excelsior Energy Capital focuses on mid-market wind and solar energy investments across North America, making this partnership a critical step toward expanding renewable energy storage infrastructure in the region.

Expanding Presence in the U.S. Energy Storage Market

The deal follows LGES’s 8GWh agreement with U.S. renewable energy producer Terra-Gen in November 2023, further cementing its position as a leading supplier of battery energy storage solutions (BESS) for the growing U.S. renewable energy sector.

OCI, CPS, LGES Partner on Texas BESS Project

Battery Energy Storage System (BESS)

The Alamo City BESS project in Texas marks a major milestone in energy storage and US-Korea clean energy collaboration.

Texas Battery Storage Capacity to Expand with 120MW BESS

OCI Energy, CPS Energy, and LG Energy Solution Vertech will jointly develop the Alamo City Battery Energy Storage System (BESS). The 120MW/480MWh facility, located in Bexar County, Texas, will supply backup power during peak demand periods.

Under the deal, LGES Vertech will deliver the BESS units and energy management systems to OCI Energy, the project developer. CPS Energy, the municipal utility serving San Antonio, will purchase the storage capacity through a long-term offtake agreement.

This collaboration increases CPS Energy's battery storage portfolio to 520MW, ensuring greater grid reliability across south-central Texas.

BESS Project Aligns with Vision 2027 Energy Plan

The Alamo City BESS project is scheduled to begin operation by late 2026. It will play a crucial role in Vision 2027, CPS Energy’s roadmap to a balanced, reliable, and sustainable energy mix.

Vision 2027 includes plans for 1,710MW of natural gas, 500MW of firming capacity, 84MW of wind, and 730MW of solar. The addition of this battery storage system helps CPS diversify and decarbonize its energy infrastructure.

As a result, this project strengthens both energy resilience and cross-border cooperation between the US and South Korea in the energy transition.

The Metalnomist Commentary

The Alamo City BESS is more than a storage project—it’s a blueprint for municipal utilities navigating the clean energy transition. With players like OCI, CPS, and LGES joining forces, we’re seeing the integration of international technology with local grid needs. Expect similar regional collaborations to follow as US battery storage demand accelerates through 2030.

Energy Vault and Jupiter Boost Texas Battery Storage Capacity

Energy Vault

Expanding Utility-Scale Battery Energy Storage in Texas

Energy Vault and Jupiter Power will add 100MW/200MWh of utility-scale battery energy storage systems (BESS) to the Texas grid. The expansion builds on an existing 100MW/200MWh facility at a Jupiter site in the Electric Reliability Council of Texas (ERCOT) region, which is expected to begin commercial operations by late summer 2025.

The two companies have collaborated since signing a September 2022 deal to fast-track 2.4GWh of domestically qualified BESS. By increasing battery capacity, they aim to strengthen grid resilience, particularly in response to extreme weather events that have tested ERCOT’s stability in recent years.

Scaling Production and Supply Chain Integration

Austin-based Jupiter Power is developing 12GW of utility-scale energy storage projects across the United States, from California to Maine. In June 2024, Jupiter secured a 3GWh battery supply deal with China’s HiTHIUM, scheduled for delivery by the end of 2025. HiTHIUM is also establishing a 10GWh-per-year battery modules and systems plant in Mesquite, Texas, reinforcing domestic manufacturing capacity for large-scale storage projects.

The BESS expansion reflects growing demand for reliable renewable integration, enabling the grid to balance supply and demand more efficiently. By partnering with manufacturers and scaling local production, Energy Vault and Jupiter are positioning themselves as key players in the transition to a cleaner, more resilient US power grid.

The Metalnomist Commentary

The Energy Vault–Jupiter expansion underscores the accelerating deployment of large-scale storage to meet renewable integration challenges. The addition of domestic battery production in Texas could reduce supply chain risks and ensure faster deployment timelines. Success will depend on how efficiently these assets can be integrated into ERCOT’s operational framework.

Michigan BESS Projects Approved to Support Grid Reliability and Data Center Growth

Michigan BESS Projects

Michigan BESS projects received regulatory approval on 27 March, adding 1,332MW of battery energy storage capacity to support grid reliability, renewable power integration and large-load electricity demand. The Michigan Public Service Commission approved six battery energy storage system projects across two major demand areas.

Three of the Michigan BESS projects will provide a combined 1,000MW to support DTE Electric’s integrated resource plan. That plan calls for adding 15,000MW of solar and wind generation in Michigan, making storage capacity essential for balancing intermittent renewable output.

The remaining three projects, totalling 332MW, will support a 1,383MW data center being developed by Green Chile Ventures, an Oracle subsidiary. The storage assets are intended to improve reliability and reduce costs for customers as data center electricity demand rises.

Battery Storage Becomes Critical for Renewable Grid Planning

Battery energy storage systems are becoming a core part of Michigan’s clean power buildout. DTE Electric’s 1,000MW of approved storage will be tied to 20-year tolling agreements, giving the utility more flexibility as solar and wind capacity expands.

This matters because renewable power growth requires fast-response assets that can shift electricity from periods of high generation to periods of high demand. BESS projects can also reduce strain on the grid during peak periods and support more reliable power delivery.

Michigan BESS projects therefore represent more than a backup power investment. They are part of the infrastructure needed to make renewable generation useful at scale and to protect grid stability as electricity demand grows.

Data Center Demand Adds a New Storage Growth Channel

The data center-linked BESS projects show how artificial intelligence and cloud infrastructure are reshaping power markets. Green Chile Ventures must develop 1,383MW of energy storage to match the contracted demand of its data center project.

The approved 332MW is only the first phase of that requirement. Green Chile Ventures will bear the costs over 15 years, while DTE Electric will develop, own and operate the facilities.

This structure highlights a wider market trend. Data centers need faster power access, and battery storage can help bridge the gap between project timelines, grid constraints and customer affordability concerns. Michigan already hosts 74 data centers, with Detroit accounting for 32, making power infrastructure an increasingly important competitiveness factor.

The Metalnomist Commentary

Michigan BESS projects show that battery storage is becoming essential infrastructure for both renewable energy and AI-driven data center growth. The next bottleneck will not only be battery supply, but also transformers, grid equipment, copper, aluminium and permitting capacity.

Stellantis NextStar Battery JV Exit Signals a New Shift in North American Battery Strategy

NextStar Battery

Stellantis NextStar battery JV exit marks another important shift in North American battery strategy. Stellantis will sell its 49pc stake in NextStar Energy to LG Energy Solution. The joint venture built Canada’s first large-scale lithium-ion battery plant in Windsor, Ontario. As a result, Stellantis NextStar battery JV exit shows that automakers are rethinking how they participate in battery manufacturing.

This move matters because NextStar was a major industrial project. Stellantis and LG Energy Solution invested more than C$5bn in the venture. Yet the ownership structure is now changing even as the plant remains strategically important. Therefore, Stellantis NextStar battery JV exit is not a retreat from batteries. It is a shift in how the company wants to access them.

Stellantis will remain a customer of the facility after the transaction. That means the company still wants battery supply, but no longer wants to own nearly half of the manufacturing platform. Consequently, Stellantis NextStar battery JV exit reflects a broader trend toward supply access without full operating exposure.

EV Battery Joint Ventures Are Moving Into a New Phase

EV battery joint ventures are no longer being treated as fixed long-term ownership models. Automakers are increasingly separating battery access from battery plant ownership. That change is becoming visible across North America. As a result, EV battery joint ventures are entering a more flexible and less traditional phase.

The Stellantis decision fits a wider pattern. Other major automakers have also restructured or exited battery partnerships. General Motors sold its Michigan battery JV stake to LG Energy Solution in 2025. Ford also changed the structure of its BlueOval SK partnership later that year. Therefore, Stellantis NextStar battery JV exit looks less like an isolated deal and more like an industry reset.

This shift likely reflects changing economics and strategy. Battery manufacturing is capital-intensive, operationally complex, and increasingly competitive. Automakers may now prefer to secure output through commercial agreements while leaving plant ownership and operation to battery specialists. Meanwhile, battery makers can broaden their customer base more easily under that structure.

North American Battery Strategy Is Becoming More Specialized

North American battery strategy is now moving toward clearer specialization between automakers and cell producers. After the ownership change, NextStar will serve a broader customer base, including the energy storage system sector. That gives the plant more flexibility than a single-customer automotive model. As a result, the facility may become commercially stronger even as Stellantis reduces direct ownership.

This matters because battery plants are no longer only tied to electric vehicle demand. Energy storage systems are becoming a second major growth market. A battery facility that can sell into both EVs and stationary storage may have better long-term utilization and lower concentration risk. Therefore, North American battery strategy is becoming more diversified at the customer level.

The broader lesson is clear. Automakers still need batteries, but they may not want to carry the same level of manufacturing ownership risk as before. Battery producers, meanwhile, can gain more control and expand into wider end markets. Consequently, Stellantis NextStar battery JV exit may signal a more mature phase in the North American battery buildout.

The Metalnomist Commentary

This deal matters because it shows the battery race is no longer only about building plants. It is now about deciding who should own them, run them, and absorb the risk. Stellantis still wants battery supply, but LGES now looks better positioned to turn NextStar into a broader industrial platform.