Columbia Business School has published an interesting report on the future of energy storage. Just two decades ago, batteries were widely believed to be destined for use only in small objects like laptops and watches. But now, batteries have expanded dramatically in both size and relevance to assume a critical role in enabling society’s transition to clean energy.

Here are several key takeaways I took from the report:

• Energy Storage’s Critical Role in Clean Energy Transition: Energy storage, particularly batteries, is now essential for enabling society’s transition to clean energy. This includes supporting renewable energy systems (like solar and wind) and electrifying transportation to reduce CO2 emissions, with the potential to avoid up to 17 Gt of CO2 emissions by 2050.
   
• Batteries as Long-Term Infrastructure: Unlike internal combustion engine cars, EV batteries are expected to outlast their vehicles, suggesting that batteries should be treated as long-term infrastructure, not disposable components. Innovations in battery longevity, such as second-life applications (e.g., repurposing EV batteries for grid storage), could significantly reduce storage costs and help with energy security.
   
• Recycling and Raw Material Sourcing Challenges: The push for clean energy storage requires an estimated 200-300 TWh of battery storage. However, there are economic and environmental challenges in sourcing raw materials and recycling used batteries. Both mining and recycling must be integrated to meet global demand for battery materials.
   
• Global Battery Market Shifts: The global battery market for EVs has shifted from Japan's dominance to China and South Korea, with China commanding over 50% of the market. This shift is driven by different chemistries, such as lithium iron phosphate (LFP) vs. nickel-cobalt-manganese (NCM), balancing cost and performance concerns.