Asia-Pacific Energy Storage Systems Growth Expected to Impact Lithium Market by 2026
The Asia-Pacific region is set to see significant growth in energy storage systems (ESS) by 2026, driven by government initiatives, particularly in China, which currently dominates the market with 88% of the region's capacity. As countries like South Korea, Australia, Vietnam, and Malaysia ramp up their ESS targets, this shift is expected to impact the lithium market, with increased demand for lithium-iron-phosphate batteries amid changing production priorities among battery manufacturers.

Stronger government signals and initiatives in the Asia-Pacific are expected to boost energy storage system (ESS) deployments, influencing the battery and lithium markets by 2026. As of 2024, China holds 88% of the region's 85GW capacity, targeting 180GW by 2027.
South Korea aims for 2.22GW by 2029, while Australia is investing A$500 million in battery manufacturing. Other countries like Vietnam and Malaysia are also advancing, with Vietnam targeting 16.3GW by 2030 and Malaysia conducting its first 400MW auction.
Government support for integrated renewables is increasing, with India and the Philippines also awarding projects. South Korea's first ESS contract auction in 2025 selected eight operators for 563MW. The shift to ESS from EV production among South Korean battery makers is notable, with companies like LG Energy Solution producing lithium-iron-phosphate batteries. China's dominance in LFP chemistry remains strong, with expectations of significant ESS growth in 2026 influencing lithium market dynamics.




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