How the Decline in Li-Ion Storage Costs is Powering Energy Storage
Storing energy is the backbone of reliable renewable energy systems, essential for mitigating intermittency—the inherent variability in renewable energy production between periods of high generation and times of low or no output. To bridge this gap, various energy storage technologies are employed, with Lithium-Ion (Li-Ion) Battery Energy Storage Systems (BESS) emerging as the most widely adopted solution.
For both utility-scale operators of wind and solar parks and private households, the cost of energy storage remains a critical barrier to broader adoption of renewable energy. However, recent trends can help improve cost efficiency in renewable energy storage and give tailwinds for more sustainable power generation. Discover more about the reasons for Li-Ion storage cost decline and how advanced foam and tape materials can accelerate the shift in energy supply.
Li-ion battery prices saw a significant decline through 2024, driven by falling raw material costs—particularly lithium and cobalt—and increased manufacturing scale, according to S&P Global. However, in 2025, prices are beginning to stabilize as raw material costs rebound and manufacturers face tighter margins. Despite this, efficiency gains and the emergence of ultra-large-capacity cells are helping to maintain competitive pricing.
Ultra-large-capacity cells, typically exceeding 500 ampere-hours (Ah), represent a major leap in stationary energy storage technology. Designed specifically for grid-scale applications rather than electric vehicles, these next-generation cells offer:
- Higher energy density and improved thermal management due to their thin, blade-like form factor.
- Lower integration and maintenance costs by reducing the number of cells per container.
- Enhanced safety and reliability, supporting longer operational lifespans.
These cells are entering mass production in 2025 and are expected to significantly improve the cost-efficiency and scalability of BESS.
In addition, new technologies like Lithium Iron Phosphate (LFP) have become dominant in stationary storage. LFP offers a compelling balance of safety, longevity, and affordability, and avoids reliance on expensive or geopolitically sensitive materials. Other technologies where less rare and cost-intense materials are required are in development to reduce footprint on one side and save costs on the other.
Another important driver for BESS cost reduction are several government programs particularly in the U.S. and EU like by the Department of Energy (DOE), Horizon Europe, REPowerEU and Fit for 55 packages.
Together, these factors are transforming the economics of energy storage. Lower costs, faster installation timelines, modular system designs, and improved reliability—often exceeding 20 years—are making BESS a cornerstone of modern, flexible, and renewable-powered grids.
As part of new and existing BESS modules and to further improve their performance, innovative foam and tape solutions are used to ensure reliable functioning, safety and grid stability. In thermal management, for example, high-performance foams help manage heat in densely packed battery enclosures, improving safety and longevity. Special intercell pads with tunable Compression-Force-Deflection (CFD) curve apply the right amount of pressure during charging and discharging cycles for improved performance and enhanced cell lifespan. Additionally, they can help reduce risks of thermal runway propagation.
Other tape solutions are improving electrical resistance of critical components and reduce mechanical stress, especially in large-format cells and modular racks.
When it comes to sealing and insulation, pressure-sensitive adhesives and gasketing materials ensure environmental sealing, critical for outdoor and utility-scale deployments in challenging environments.
As the energy storage landscape evolves, several innovative trends are shaping the next generation of BESS. With higher energy density, simplified system architecture, and lower integration costs, they are expected to become the new standard for grid-scale applications.
Advanced enclosure designs for containers and racks are being optimized for thermal performance, modularity, and ease of maintenance. These improvements support faster deployment and better lifecycle economics.
Together with different battery chemistries, new solutions such as sodium-ion and solid-state batteries are being developed to reduce reliance on critical raw materials and further improve safety and sustainability.
As these technologies mature, material science will play a pivotal role in unlocking their full potential. Advanced foams, tapes, and adhesives will be essential in addressing the thermal, mechanical, and environmental challenges of next-generation storage systems. From pressure-sensitive adhesives that ensure robust sealing to intercell pads that manage compression and heat, talk to your tape expert to find out how these materials can be essential for your BESS projects.