One of the quiet achievers in the renewable energy sector is the modern version of the old-fashioned battery. The technological advancement in the design and manufacturing of battery technology has made it the front runner for energy storage. 

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International pressure on climate change and the increased active awareness of the total cost of energy has led to a global push towards alternative ways of generating and storing power. Efforts to reduce the effects of climate change are evident in the Kyoto Protocol climate targets and in the recent Paris Agreement where developed countries have agreed to self-imposed emission targets in an attempt to lower their carbon footprint.

Australia, for instance, has pledged to reduce carbon emissions to 13% below 2005 levels by 2020, in line with other major developed countries. Major global corporations have identified the trend and have made their own inroads into developing sustainable ways to generate and store energy. This has caused a surge in the renewable energy market, growing at a compound annual growth rate (“CAGR”) of 5.3% in Australia and according to IBISWorld led to a forecast valuation at A$7.7 billion by 2020, an increase of 20.8% from 2017.

Battery storage demonstrating strong growth

Many industries related to the renewable energy sector have also seen growth, although one in particular has stood out in recent years – the use of Lithium Ion (“Li-on”) batteries in energy storage. As technology advances Li-on batteries efficiency and storage capacity is increasing, and at the same time production cost is decreasing. Consequently, the application of Li-on batteries across a range of industries has increased dramatically. A great example of this is the use of Li-on batteries in New Energy Vehicles (“NEV”) or electric cars.

 

What is the projected demand for Li-on batteries, where will it be priced and which listed companies stand to benefit from this trend?

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About Kevin Hua

Kevin Hua is a Co-Founder of AtlasTrend, an online investment platform that makes it easy for anyone to learn and invest in trends transforming our world. Kevin has over 19 years experience in financial markets including as Senior Portfolio Manager at Atrium Investment Management and Stark Investments.