Volta Foundation 2025 Report: Global Battery Market Enters the “BESS Decade”
San Francisco, Saturday, 24 January 2026.
The Volta Foundation’s sixth annual report declares the onset of the “BESS Decade,” revealing a record-breaking 79% surge in global energy storage capacity. With electric vehicle sales crossing 21 million units and China controlling over 90% of critical supply chains, the industry faces a transformative era of rapid scaling and geopolitical recalibration.
From Emerging Tech to Foundational Infrastructure
Released on January 24, 2026, the Volta Foundation’s 2025 Battery Report—now in its sixth edition—characterizes the battery industry as having transitioned from an emerging sector to “foundational infrastructure” [1]. This shift is underscored by the sheer scale of deployment observed throughout 2025, a year described as transformative for global energy markets [2]. According to Michael Liu, Director of Research & Insights at the Volta Foundation, the decisions currently being made regarding technology and supply chains will define the trajectory of the sector for decades to come [1]. The report, which aggregates insights from over 120 professionals across 90 institutions, serves as an open-access baseline for investors and policymakers navigating this rapidly maturing landscape [1][2].
The Surge of the “BESS Decade”
The report identifies the onset of the “BESS Decade,” highlighting that Battery Energy Storage Systems (BESS) achieved a remarkable 79% year-over-year growth by power in 2025 [2]. For the first time in history, global BESS capacity additions exceeded 100 GW in a single year, signaling a massive acceleration in grid-scale storage deployment [2]. Concurrently, the electric vehicle (EV) market continued its upward trajectory, with global xEV sales growing 22% to reach 21.6 million units [2]. This growth implies that sales in the previous year were approximately 17.705 million units. A significant milestone was reached in China, where xEVs accounted for 51% of new car sales, marking the first time the country achieved majority EV penetration [2].
Supply Chain Sovereignty and Geopolitical Tensions
Despite global efforts to localize supply chains, China’s dominance over critical raw materials remains entrenched. The report reveals that Chinese supply chains currently control 97% of LFP (Lithium Iron Phosphate) cathode production and 93% of graphite anode production [2]. This concentration of control has heightened geopolitical tensions; Western nations are ramping up tariffs and subsidies to decouple from Chinese reliance, while China has countered with export restrictions on high-end battery technologies [2]. In a move reflecting these tightening supply lines, Syrah Resources and Tesla recently extended their graphite supply agreement through 2026, ensuring the continued delivery of 8,000 metric tons annually [4].
The Hidden Chemical Backbone
Beyond the headline minerals like lithium and cobalt, a study published in Green Chemistry on January 23, 2026, highlights the critical, often overlooked role of chemical reagents such as sulfuric acid and sodium hydroxide in the battery lifecycle [3]. Producing a single kilowatt-hour (kWh) of battery cell capacity requires between 7 and 39 kg of these reagents [3]. As the industry scales, demand for these chemicals is projected to skyrocket; by 2040, battery manufacturing could consume between 21% and 40% of the global sulfuric acid supply [3]. This presents a potential bottleneck, as 80% of elemental sulfur used for sulfuric acid is currently a by-product of fossil fuel desulfurization, creating a paradox where green energy storage remains tied to fossil fuel production [3].
Technological Frontiers and Workforce Dynamics
Technological innovation accelerated in 2025, with sodium-ion batteries moving toward early commercialization and silicon anodes shifting from SiOx to Si-C architectures [2]. Notably, CATL unveiled its Tianxing II series, a mass-produced low-temperature sodium-ion battery for light commercial vehicles, boasting an energy density of 175 Wh/kg [4]. However, the industry faces a persistent talent gap. While the base salary for junior engineers in California has reached $166,000, employers report significant difficulties in filling manufacturing and applied technical roles [2]. With the global installed capacity of AI data centers also surpassing 100 GW, the competition for power and technical infrastructure is intensifying, further pressuring the battery supply chain to adapt at a breathtaking pace [2].