What to Expect in Energy Storage for 2025
As we kick-off 2025, the founder of Vaulta, Dominic Spooner shares his insights on the evolving landscape of energy storage and battery technology, highlighting several key trends that will shape the industry in the coming year.
Aside from obvious takes such as increased energy density, and increased uptake of energy storage due to excess solar on the grid, there’s some exciting things coming that may not be on everyone’s radar.
These views are his own and driven by experience of working directly within the renewables industry.
Embracing New Battery Chemistries
Expect to see new battery chemistries transitioning from laboratories to real-world applications. Sodium variant batteries are likely to gain traction in commercial settings, while aluminium batteries may undergo critical field testing. Companies like Vaulta will play a vital role in leading these innovations with integrating these into testing locations.
A Pragmatic Approach to Expected Cost Reductions
While there are forecasts for lower lithium battery costs, there is an asterisk. Battery components may become cheaper, but the overall cost of running a business continues to rise. This is not exclusive to the technology sector. The cost of doing business is going up. Shipping costs also continue to rise. As a result, any savings realised may not directly translate to lower prices for consumers. AI and automations, discussed later, will alleviate this over time, but the results of that may not be seen in 2025.
Bringing Second-Life Batteries to the Forefront
The concept of second-life batteries is evolving. Once seen as trash collection, these batteries, which are nearing the end of their primary usage after 5 to 7 years, are now being recognised for their potential. Decommissioning and reusing these batteries can prevent waste and provide affordable energy for other applications. Expect to see more mandates and guidelines emphasising the importance of second-life usage in project requirements.
Addressing Sustainability in Neighbouring Islands
Sustainability is a critical focus as we consider Australia’s neighbouring nations. These regions face unique energy challenges due to their geography. In 2025, addressing these issues will become increasingly important, with Australian companies likely to enhance their efforts to provide sustainable energy solutions and reduce reliance on diesel fuel (and the freight complexities and costs that go with it). Vaulta is doing more and more work in these locations and grant funding is growing in this space.
The Rise of AI in Energy Management
Artificial intelligence is set to further revolutionise energy storage in 2025. In reality it already has but this shows no signs of slowing down. Smart monitoring and IoT technology will support the development of "set and forget" batteries that learn and adapt over time to the user’s needs. Businesses must embrace AI integration to remain competitive in this evolving landscape. Adapt or die. Vaulta is rolling out further IoT functionality with AI in the first half of 2025.
Recycling Takes Centre Stage
Recycling and end-of-life battery management have become pressing topics. Industry mandates increasingly require companies to implement effective recycling processes. Projects that lack comprehensive recycling strategies will not move ahead. The pressure is on; time is up, and companies must embrace circular practices to remain relevant in the market.
Conclusion
2025 promises to be a pivotal year for energy storage and battery technology. From innovative new chemistries and cost considerations to the urgent need for recycling and sustainable practices, companies must navigate this evolving landscape with foresight and agility. Keeping up with these trends will be crucial for success in the energy sector.
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