Global BESS installations exceeded 300 GWh in 2025
Benchmark Mineral Intelligence estimates that global battery energy storage system (BESS) installations reached around 315 GWh in 2025, up nearly 50% year-on-year compared with 2024. This reflects strong growth across both grid-scale and behind-the-meter segments, with large utility projects accounting for the majority of capacity additions. China and the United States led worldwide deployment activity, with the broader Middle East, Australia and Chile also climbing into the top five markets, replacing some historically dominant European markets.
Project sizes continued to grow, with 46 giga-scale storage projects entering operation in 2025, up sharply from 17 in 2024. More than 150 giga-scale projects are reported to be in the pipeline for 2026, signalling continued build-out momentum.
2026 outlook remains strong, but pricing dynamics are shifting
Analysts forecast that 2026 will be another strong year for energy storage, with new operational capacity expected to exceed 450 GWh. Global cell production capacity continues to expand, reducing the risk of material supply constraints even as demand accelerates.
However, lithium prices have risen in early 2026 from recent lows, driven by tighter inventories, slower mine production and strong end-market demand. These cost pressures are beginning to affect cell prices and may gradually be reflected in system pricing, especially outside China where margins are higher.
BasenPower commentary: key takeaways for projects and sourcing
From BasenPower’s perspective, the 2025 BESS growth trend and evolving 2026 landscape highlight several important themes for developers, integrators and investors:
1. Strong demand underscores storage’s strategic value
The nearly 50% increase in installations reflects broad recognition that battery storage is no longer a niche add-on; it is central to grid reliability, renewable integration and capacity strategy across markets. Developers should prioritise energy storage early in project design, alongside PV or wind generation.
2. Regional dynamics are diversifying
China and the US remain key engines of BESS growth, but emerging markets such as the Middle East, Chile and Australia are gaining share. This diversification points to opportunities for partners who can tailor solutions to specific regional risk profiles, interconnection standards, and financing models.
3. Pricing and supply chain vigilance is essential
While aggressive pricing helped drive early adoption, the recent uptick in lithium costs highlights the importance of resilient supply chains. Project teams should balance short-term cost advantages with long-term performance, warranty, and lead-time stability when selecting suppliers.
4. Pipeline visibility enables strategic planning
With more than 150 giga-scale projects reported in the 2026 pipeline, storage providers and EPCs have a unique opportunity to align capacity expansions, logistics, and O&M frameworks well ahead of deployment peaks. Early engagement with site owners and grid operators often distinguishes successful bids from second-tier contenders.
Recent market data shows the global operational BESS fleet has now surpassed 250 GW, overtaking traditional pumped hydro energy storage for the first time, and annual additions could exceed 130 GW / 350 GWh in 2026, with major contributions from China, the US, the UK, Australia, and Germany as leading markets. These trends further cement energy storage as one of the fastest-growing clean energy technologies of the decade.