From a Single Lithium Route to a Diversified Energy Storage Technology Matrix

New energy storage technologies are advancing rapidly worldwide.

In China, the 200 MW/400 MWh advanced electrochemical energy storage project in Shanwei, Guangdong, has accelerated the large-scale deployment of solid-liquid hybrid battery technology. The project was selected as one of the Top 10 Scientific and Technological Innovation Achievements in the Energy Industry in 2025 by the National Energy Administration.

In the United States, Google has partnered with Form Energy to explore the deployment of ultra-long-duration and high-safety iron-air battery technology for data center power systems, providing a potential new energy solution for the AI era.

Meanwhile, in Japan, South Korea, and Europe, solid-state batteries are regarded as a key technology capable of reshaping the future energy landscape. Governments and enterprises are accelerating investment through policy support, financial incentives, and industrial collaboration to secure leadership in this emerging field.

New Energy Storage: A Critical Pillar of Future Power Systems

Energy storage plays a fundamental role in building next-generation power systems by transforming the traditional electricity model of “generation equals consumption.”

Traditional energy storage has mainly relied on pumped hydro storage. In contrast, new energy storage refers to various storage technologies—excluding pumped hydro—that primarily deliver stored energy in the form of electricity.

Compared with pumped hydro storage, new energy storage offers several advantages:

• Shorter construction cycles

• More flexible site selection

• Faster response speed

• Stronger adjustment capabilities

• Better compatibility with renewable energy integration

These systems can be deployed across the generation side, grid side, and consumer side, enabling deeper integration into modern power networks.

From a technological perspective, new energy storage can mainly be divided into two categories:

1. Electrochemical Energy Storage

Electrochemical storage relies on chemical reactions inside batteries to store and release energy. It features:

• Fast response speed

• Flexible deployment

• High scalability

2. Physical Energy Storage

Physical storage uses materials such as air, water, or heat as energy storage media. It is more suitable for:

• Large-scale applications

• Long-duration energy storage

• Grid-level energy balancing

Beyond Lithium: The Rise of Multiple Battery Technologies

Over the past decade, liquid lithium-ion batteries have dominated the electrochemical storage market due to their high energy density and mature supply chains, accounting for more than 96% of new energy storage installations.

However, as energy systems become more complex, storage technologies are expected to achieve more than simply “storing electricity.” Future systems must simultaneously address:

• Safety

• Cost efficiency

• Resource availability

• Lifetime performance

• Storage duration

A single technology can no longer satisfy all requirements. Instead, the industry is moving toward a multi-dimensional technology portfolio covering different time scales—from millisecond-level response applications to seasonal energy storage.

Electrochemical Storage Technologies: Different Technologies for Different Needs

Solid-State Batteries: The Next Generation High-Performance Battery

Solid-state batteries are widely regarded as one of the most promising future energy storage technologies.

Unlike conventional lithium-ion batteries that use liquid electrolytes, solid-state batteries utilize solid electrolytes to transport ions, significantly reducing risks associated with:

• Thermal runaway

• Fire hazards

• Safety failures

They can also potentially use lithium metal anodes to achieve higher energy density.

The Institute of Physics of the Chinese Academy of Sciences and WeLion New Energy have developed semi-solid lithium batteries that have already achieved large-scale grid storage applications.

Full solid-state batteries are expected to begin commercialization around 2028.

Companies including Toyota Motor Corporation, Samsung Electronics, and Solid Power in the United States are accelerating research and industrialization efforts.

Future breakthroughs in material costs and manufacturing processes will significantly influence the development of both large-scale storage systems and electric vehicles.

Sodium-Ion Batteries: A Low-Cost Alternative to Lithium

Often considered the “complementary partner” of lithium batteries, sodium-ion batteries have attracted growing attention.

Sodium shares similar chemical characteristics with lithium but offers major advantages:

• Abundant resources

• Wide geographic availability

• Lower material costs

Known as a “low-cost resource,” sodium can maintain stable performance under extreme temperatures ranging from -30°C to 50°C, making it suitable for:

• Cold-climate energy storage

• Grid peak regulation

• Communication base stations

The Institute of Physics of the Chinese Academy of Sciences and China Sodium Energy have completed pilot-scale sodium-ion storage projects at the hundred-megawatt-hour level.

French company Tiamat is also developing fast-charging sodium-ion batteries for transportation and energy storage markets.

Flow Batteries: A Strong Solution for Long-Duration Storage

Unlike conventional batteries that store energy inside electrodes, flow batteries store energy in external electrolyte tanks.

Their key advantages include:

• Extremely long lifespan

• High safety

• Excellent suitability for large-scale storage

China has developed one of the world's largest vanadium flow battery projects—the Dalian Flow Battery Energy Storage Peak-Shaving Power Station, with a first-phase capacity of 100 MW/400 MWh.

The U.S. Department of Energy continues to support flow battery research and demonstration projects, while countries such as Australia are incorporating flow batteries into renewable energy projects.

Iron-Air Batteries: Enabling Multi-Day Energy Storage

Iron-air batteries store energy through a reversible “rusting and de-rusting” process.

During discharge:

• Oxygen from the air reacts with iron to form rust.

During charging:

• Iron oxide is converted back into iron.

Compared with traditional lithium-ion batteries, which typically provide 2–10 hours of storage, iron-air batteries can potentially deliver energy over 100 hours.

With inexpensive iron materials and strong safety advantages, the technology is considered promising for:

• Extreme weather backup power

• Grid resilience

• Multi-day energy storage

Future improvements will focus on electrode innovation and electrolyte optimization.

Physical Energy Storage Technologies Continue to Advance

Physical energy storage technologies are also developing rapidly.

Compressed Air Energy Storage (CAES)

CAES uses excess electricity to compress air and store it underground. When electricity is needed, the compressed air is released to drive generators.

China has achieved breakthroughs in advanced compressed air storage systems, continuously improving single-unit power capacity.

Flywheel Energy Storage

Flywheel systems store kinetic energy through high-speed rotating components.

Advantages include:

• Extremely fast response

• High power output

• Long cycle life

They are suitable for short-duration frequency regulation.

Thermal Energy Storage

Technologies such as molten salt thermal storage and cold energy storage use heat or cooling capacity as storage media, providing additional flexibility for renewable energy systems.

A Future Energy System Based on Technology Collaboration

Different storage technologies are gradually forming specialized roles:

Rather than competing directly, these technologies will complement each other to provide comprehensive support for future power systems.

Energy Storage Enters the Era of Large-Scale Deployment

As technologies mature, new energy storage is moving from demonstration projects toward commercial-scale deployment across:

• Renewable energy plants

• Industrial parks

• Zero-carbon communities

• Green buildings

• Remote microgrids

Renewable energy generation remains the largest application scenario.

Energy storage enables excess renewable electricity to be stored and released during peak demand periods, helping:

• Reduce grid fluctuations

• Improve renewable energy utilization

• Support high penetration of solar and wind power

AI Becomes a New Growth Driver for Energy Storage

Artificial intelligence is becoming a major force driving energy storage demand.

The rapid expansion of AI computing infrastructure has created enormous electricity requirements. Technology giants such as Google, Microsoft, Meta, and Amazon are exploring long-duration energy storage solutions for data centers.

Energy storage is becoming a critical foundation for the AI era by ensuring:

• Reliable power supply

• Renewable energy integration

• Grid flexibility

At the same time, AI is transforming the entire energy storage value chain.

In R&D:

AI can accelerate material discovery and predict battery performance, reducing development cycles.

In Manufacturing:

Digital twins, machine vision, and intelligent automation are improving battery production efficiency and quality control.

In Operation:

AI can monitor system conditions, predict degradation, identify safety risks, and optimize charging and discharging strategies based on:

• Weather conditions

• Electricity prices

• Energy demand