Batteries, as mundane as they are, are central to the cleantech revolution. Along with emerging technologies such as ultracapacitors and flywheels, batteries are at the heart of energy storage - the ability to store enough energy to power electric transportation and solve the intermittency issues associated with solar and wind.
Energy storage is widely viewed as an energy efficiency mega-trend that's destined to grow to gigantic proportions over the next decades. This critical enabling technology is bringing us plug-in and electric cars and a smart grid based on large scale renewable energy.
The market for batteries, supercapacitors and fuel cells for transportation and smart grid applications is projected to double from $21.4 billion in 2010 to $44 billion in 2015, according to "Emerging Technologies Power a $44 Billion Opportunity for Transportation and Grid" by Lux Research. Between 2010 -2015:
- Smart grid technologies are projected to skyrocket from $5.4 billion-$15.8 billion.
- Electric vehicle storage technology will nearly double from $7.7 billion-$14.5 billion
- Electric bike and scooter batteries will grow from $6.4 billion-$10.9 billion.
Lead-acid batteries currently dominate transportation markets, but lithium-ion (Li) battery markets are growing almost three times faster.
As we're getting so accustomed to hearing, almost all the world's high volume advanced battery manufacturers are in Asia. Until now, the US hasn't had much manufacturing capacity and few trained battery engineers and scientists.
President Obama set out to change that and put the US on the map for advanced batteries. His goal is to have a million plug-in hybrids (PHEVs) on the road by 2015. As you read on, you'll realize how difficult it will be to achieve that goal, but the Recovery Act gave us a running start.
In August 2009, the Department of Energy announced grants for 48 advanced battery and electric drive projects. The $2.4 billion will build US manufacturing capacity for batteries and electric drive components and expand battery recycling. An additional $1 billion was granted for research and development and $300 million for the government to buy hybrids, PHEVs and EVs (they just announced the purchase of 5600 vehicles). Tax credits for people who purchase PHEVs, neighborhood electric vehicles and EVs run as high as $7500.
Another strong driver for energy storage is the EU's stringent emission requirements - by 2012, auto manufacturers must reduce average CO2 emissions from the current level of 160 g/km to 120 g/km. The Obama administration's new CAFE standards went into effect April 1, which require light vehicles to average of 35 mpg by 2016.
Meanwhile, a Reuters survey of venture capital firms found that energy storage tied with energy management as the top cleantech sectors for investment in 2010.
