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Energy · Issue 01

Batteries now outbuild the gas turbine

The world added 108 GW of batteries in 2025 — more new capacity than gas plants managed in their best year. China installed most of it.

EnergyUpdated 2026-08-316 min read
029.258.387.5117202020212022202320242025ChinaUnited StatesRest of world
  • China
  • United States
  • Rest of world
Battery storage added in 2025
108 GW
Versus 2024 additions
+40%
China’s share of the 2025 build
63 GW
Installed stock versus 2021
11×

A comparison the industry will hate, and should sit with

The IEA’s 2026 storage commentary is the line: 108 GW of batteries added in 2025, up about 40% from 2024, and more than the historical peak of gas-fired power additions (about 107 GW, in 2002). Utility-scale was 87 GW of that. Installed battery capacity is now eleven times what it was in 2021. This is not ‘nascent’. It is a power technology growing faster than the thermal plant it is starting to complement.

China, then California, then everyone else

China added just over 63 GW — roughly 60% of the world — a third more than in 2024. The United States added 19 GW, up about 60%, of which more than 16 GW was utility-scale. Europe and the rest share what remains. The geography matches solar and EVs: the manufacturing and the deployment are the same country. That is a feature for system costs and a problem for everyone writing a ‘diversified supply chain’ press release.

What batteries cannot yet be

A lithium-ion four-hour battery is not a winter, and it is not a drought. Pair this chart with The power behind intelligence and The century-long reign of coal is ending. Data centres want 99.999% and they want it at 7pm in August. Batteries shave the ramps; gas, hydro, nuclear and interconnectors still hold the floor. The investing error is to treat 108 GW as the end of firm power. The investing error in the other direction is to ignore a technology that just outbuilt the gas turbine’s best year.

Investing lens

Horizon 5–12 years · Educational, not advice

Storage is the scarce complement to solar and to AI-shaped load. Own integrators and utilities with interconnection, not another cell maker in a glut, unless it is on the LFP cost curve with a captive offtake.

Where the map points

  • Utility-scale storage developers with queued interconnection
  • LFP cell and pack names tied to grid rather than only to cars
  • Inverters, transformers and the same grid-equipment book as the electric century

What can break it

  • Cell oversupply and a price war that looks like demand destruction
  • Fire, insurance and siting politics
  • A gas-price collapse that makes four-hour storage uneconomic on some grids

CHART does not recommend securities, funds or trades. Figures can be revised by their publishers. Do your own research and consider regulated advice before allocating capital.

Sources

Every headline number traces to a named publisher. Contextual sources inform the essay, not the key stat.

  1. 01PrimaryInternational Energy Agency2026
    Technology: Battery storage — Global Energy Review 2026

    108 GW of new battery storage in 2025, +40%. Installed capacity eleven times 2021. China ~60% of additions.

  2. 02CorroboratedInternational Energy Agency2026-05-29
    Battery storage is scaling up and taking on a larger system role

    Utility-scale 87 GW of 108 GW. China just over 63 GW; US 19 GW. Additions exceeded the 2002 peak for gas-fired capacity (~107 GW).

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