How Lithium Is Powering the Renewable Energy Revolution

Discover how lithium - the powerhouse behind energy storage systems - is driving the renewable energy revolution.

Introduction

The global shift toward renewable energy is picking up speed as we work to curb climate change and move away from fossil fuels. While generating power from wind, geothermal, solar, biomass, and hydro is essential, there's another piece of the puzzle that's just as important - energy storage.

That's where lithium comes in.

Lithium plays a key role in making energy storage more efficient, which is crucial for maximizing the benefits of renewables and maintaining a stable grid. In this blog post, we'll explore how lithium interacts with energy storage systems and what it means for each of the five major renewable energy sources.

Table of contents:

The Importance of Energy Storage in the Green Energy Transition

Renewable energy sources are clean and abundant, but they're also intermittent - their output depends on weather and natural cycles. That's why energy storage systems are so important. These systems store excess energy produced during sunny or windy periods and release it when demand rises or the weather isn't cooperative. They help smooth out the ups and downs of renewable energy and play a vital role in keeping the grid stable, offering backup power during outages and making sure we get the most from every watt of clean energy.

Efficient energy storage is the backbone of a successful transition to renewables. When combined, they reduce carbon emissions, improve air quality, conserve natural resources, and protect ecosystems. In short, embracing renewable energy and advanced storage solutions is one of the best ways we can fight climate change and build a healthier, more resilient planet for future generations.

The Renewable Energy Transition

Environmental and sustainable aspects of the renewable energy transition.

Renewable energy sources are crucial to reducing greenhouse gas emissions, combating climate change, and promoting a more sustainable planet. As we move away from fossil fuels, energy storage systems become essential for making the most of renewables. They don’t just keep the lights on when the sun isn’t shining or the wind isn’t blowing - they help unlock the full environmental potential of clean energy. Here are some of the most significant environmental and sustainability benefits of transitioning to renewable energy.

  • Carbon Emission Reduction

    Renewable energy sources, such as wind, solar, geothermal, biomass, and hydro, generate electricity without relying on fossil fuels. By replacing traditional power generation, which often relies on burning coal or natural gas, renewables help cut carbon dioxide and other greenhouse gas emissions. Energy storage systems make these benefits even stronger by making sure clean energy is used efficiently and reducing the need for backup power from fossil fuel sources.

  • Air Quality Improvement

    Burning fossil fuels for energy releases pollutants into the air, leading to poor air quality and harmful health effects. Switching to renewable energy sources and using energy storage helps cut emissions of pollutants like sulfur dioxide, nitrogen oxides, and particulate matter. Cleaner air means better public health, fewer respiratory issues, and a lower risk of pollution-related diseases.

  • Resource Conservation

    Unlike fossil fuels, renewable energy sources are naturally sustainable and abundant. Wind, solar, and geothermal power rely on constantly replenished sources, making them virtually endless. By tapping into these renewables, we can cut our reliance on finite fossil fuel reserves, which are not only harmful to the environment but also prone to price swings. Energy storage systems make sure the power from renewables is captured and used efficiently, helping us get the most out of these sustainable resources.

  • Land and Water Preservation

    Generating electricity from renewable sources often takes up less land and has a smaller environmental footprint than traditional energy methods. Solar panels can go on rooftops, deserts, or other non-agricultural land, while wind turbines work well in open or offshore areas. Biomass energy can come from agricultural waste or dedicated energy crops, utilizing existing resources without excessive land use. Hydroelectric power taps into the natural flow of rivers and dams. Energy storage systems help integrate renewables into existing infrastructure, reducing the need for additional land or water resources.

  • Biodiversity Conservation

    Conventional power generation often destroys habitats and contributes to biodiversity loss. Renewable energy technologies have a much lower impact on ecosystems, making it easier to conserve biodiversity and natural habitats. By reducing our reliance on fossil fuels, we can protect fragile ecosystems, safeguard endangered species, and maintain the ecological balance essential for a healthy planet.

Battery Storage and its Significance

Battery storage plays a vital role in making renewable energy reliable. At the heart of this effort are Battery Energy Storage Systems (BESS), which help solve one of the biggest challenges with renewables, such as solar and wind, intermittency.

BESS stores extra energy produced during low demand periods and releases it when demand spikes or when solar and wind generation dips. This stabilizes the power supply for homes, businesses, and the grid. Beyond storage, BESS also helps balance the grid by responding in real time to changes in energy demand, preventing blackouts and improving reliability.

Lithium-ion batteries are the preferred choice in large-scale BESS installations. Thanks to their high energy density, they store a lot of power in a small, lightweight package. They're also built to last, able to withstand thousands of charge cycles with minimal performance loss. This makes them ideal for long-term, efficient energy storage.

As the world deploys renewable energy, lithium-ion technology will play a key role in ensuring a more stable, sustainable, and resilient energy future.

Battery Energy Storage

Types of Battery Chemistries Mainly Used for BESS

As the world shifts toward cleaner energy, battery storage systems are becoming essential for managing the fluctuations of solar and wind power. These highly modular systems are perfect for everything from home backup to large-scale grid applications.

Thanks to falling costs and significant tech improvements, battery storage installations are expected to grow fivefold between 2023 and 2030. Right now, lithium-ion batteries dominate the market, making up over 80% of total battery capacity, due to their efficiency and reliability in short-term storage.

This surge highlights how batteries are not just storage solutions anymore - they're key to making our energy grids more flexible, resilient, and ready for a renewable-powered future.

  • Lithium-Ion (Li-Ion) Batteries

    Lithium Iron Phosphate (LFP) and Lithium Nickel Manganese Cobalt Oxide (NMC) are the two leading lithium-ion battery chemistries used in energy storage - together, they account for around 80% of the market.

    Both are compact and lightweight, packing a serious punch in terms of capacity and energy density. They’re also low-maintenance, quick to charge, and built to last with long lifespans and minimal self-discharge. It’s no wonder they’ve become the go-to solutions for everything from EVs to large-scale battery energy storage systems (BESS).

  • Lead-Acid (PbA) Batteries

    Lead-acid batteries have long been a staple in the automotive world, as well as in grid storage and uninterruptible power supply (UPS) systems. They're affordable, easy to recycle, and reliable across a wide range of temperatures.

    However, as lithium-ion technology advances, the limitations of lead-acid batteries are becoming more apparent. Their lower energy density and slower charging speeds make them less ideal for today's performance energy needs.

  • Sodium-Sulfur (Na-S) Batteries

    Sodium-sulfur batteries operate using molten salt and are known for their high energy and power density, long lifespan, and ability to perform reliably at extreme temperatures, typically between 300 °C and 350 °C. They're mainly used in large-scale stationary grid storage applications.

    However, they do come with challenges. These batteries are sensitive to corrosion, and sodium itself is highly flammable and potentially explosive, making safety and handling key concerns when deploying them.

  • Flow Batteries

    Flow batteries, such as the Vanadium Redox Battery (VRB), stand out for their unique liquid electrolyte storage method. They're ideal for applications that require long-duration energy storage, up to 8 hours, and systems designed for extended operational lifetimes.

    While they typically have lower energy density and slower charge and discharge rates compared to lithium-ion batteries, flow batteries offer a key advantage: safety. Thanks to their use of non-flammable electrolytes, the fire risk is significantly reduced, making them a dependable choice for grid-scale storage where long-term reliability is critical.

  • Zinc-Bromine Batteries

    Zinc-bromine batteries generate electricity through a reaction between zinc metal and bromine, using an aqueous zinc bromide solution as the electrolyte. Developed as an alternative to lithium-ion batteries for stationary power applications, they offer a key advantage - safety.

    Thanks to their water-based electrolyte, zinc-bromine batteries are less likely to catch fire or overheat. This makes them especially attractive for grid and backup energy storage, where safety and stability are top priorities.

  • Nickel-Cadmium (NiCd) Batteries

    Nickel-cadmium batteries are known for their long cycle life and the fact that they don't need ventilation or cooling systems. They're tough, reliable, and perform well in harsh environments.

    However, they have some drawbacks. Their specific energy is relatively low, and there's a risk of thermal runaway under certain conditions. Most importantly, cadmium is toxic, posing serious environmental and health hazards. This has led to strict regulations and a decline in its use for many applications.

The Connection between Lithium and Energy Storage Systems

Lithium: Powering the Future of Battery Storage

Lithium is central to the evolution of battery storage systems, thanks to its exceptional energy density, long cycle life, and fast-charging capabilities. While it's already widely used in portable electronics and electric vehicles, lithium-ion batteries are becoming the go-to choice for renewable energy storage too. Why? Because they store energy efficiently as chemical energy and make it easy to retrieve power when it's needed.

The drop in lithium-ion battery costs, driven by economies of scale and ongoing technological improvements, has made energy storage solutions more accessible and accelerated the adoption of renewables worldwide.

Booming Growth in Installed BESS Capacity

The installed capacity of battery energy storage systems (BESS) is set to skyrocket from 125 GWh in 2023 to 610 GWh by 2030. That's a compound annual growth rate (CAGR) of about 25.4% - a strong signal that BESS is becoming a vital part of modern energy systems.

Soaring Lithium Demand for Storage

With BESS growth comes a surge in lithium demand. The need for lithium carbonate equivalent (LCE) in storage systems is expected to increase from 85,000 tonnes in 2023 to 414,800 tonnes by 2030, mirroring a 25.4% compound annual growth rate (CAGR) in BESS capacity. This tight link between storage expansion and lithium use highlights just how critical lithium is to powering our energy future.

Storage's Growing Share of Lithium Demand

BESS is not only growing but also taking up a bigger piece of the lithium pie. In 2023, BESS installations accounted for 9.4% of global LCE demand. By 2030, that figure is expected to hit 13.4%. As storage systems become more essential to energy infrastructure, they'll command a larger share of the global lithium supply, opening up new opportunities for producers and investors alike.

Conclusion: A Lithium-Powered Future

Energy storage is no longer a nice-to-have - it's a cornerstone of a flexible, sustainable power system. As demand for BESS grows rapidly, the pressure on lithium supply will increase significantly. Meeting this challenge will require innovations in lithium extraction and processing to keep pace. One thing is clear: lithium will remain at the center of the renewable energy revolution.

Growing Global Battery Energy Storage Systems (BESS) Installations
Growing LCE Consumption In Manufacturing Of Forecasted BESS

The Five Major Renewable Energy Sources

Renewable energy sources and their relation to energy storage and batteries.

Renewable energy sources, such as wind, geothermal, solar, biomass, and hydro, are transforming the energy landscape. They offer clean, abundant power - but their production isn’t always consistent. The sun doesn’t always shine, and the wind doesn’t always blow.

That’s where lithium comes in.

While lithium isn’t essential for generating renewable energy, it is crucial for storing it. Lithium-ion battery systems help capture excess energy when production is high and release it when demand spikes or generation dips. This makes renewable energy more dependable, ensuring a steady, reliable supply for homes, businesses, and entire power grids.

In short, lithium-ion batteries don’t generate green energy - they make it usable, whenever it’s needed.

  • Wind

    Wind turbines harness the wind's kinetic energy and convert it into electricity. While lithium isn't needed to generate wind power, it's becoming increasingly important for storing it.

    When wind farms produce more electricity than the grid needs, lithium-ion batteries can store that excess energy and release it later, like when the wind dies down or demand spikes. This helps ensure a stable and reliable power supply, making wind energy more practical for everyday use.

  • Geothermal

    Geothermal energy captures heat from deep within the Earth to generate electricity or provide direct heating. While lithium isn't required for producing geothermal power, it plays a key role in making that energy more flexible.

    By pairing geothermal systems with lithium-ion battery storage, excess electricity can be stored during periods of low demand and used when demand peaks. This improves efficiency, supports grid stability, and ensures geothermal power remains a consistent contributor to our clean energy mix.

  • Solar

    Solar energy systems harness sunlight and convert it into electricity - clean, renewable, and abundant. While generating solar power doesn’t require lithium, storing it efficiently is where lithium-ion batteries shine.

    These batteries store excess energy produced during sunny hours and release it when sunlight fades or demand spikes. This makes solar energy more reliable, helping homes, businesses, and grids stay powered day and night - even when the sun isn’t shining.

  • Biomass

    Biomass energy comes from organic matter and can be used to produce heat or electricity. While lithium isn't directly involved in producing biomass energy, energy storage systems can still play a key role. By storing excess energy, lithium-ion batteries help ensure a continuous power supply, making biomass a more reliable and efficient part of the renewable energy mix.

  • Hydro

    Hydropower captures energy from flowing or falling water to generate electricity. While hydroelectric power doesn’t need lithium to produce energy, lithium-ion batteries can support these systems by storing energy and helping balance supply and demand. This makes the grid more stable and responsive, especially during periods of peak usage or variable generation.

The Future of Renewable Energy and Lithium

The combination of renewable energy generation and efficient energy storage systems, including lithium-ion batteries, is paving the way for a cleaner and more sustainable energy future. As storage costs continue to fall, these solutions are becoming more economically viable. This shift toward large-scale adoption of renewable energy, supported by advanced storage, has the potential to transform our power systems, cut greenhouse gas emissions, and accelerate the global move toward a greener future.

Lithium, primarily through lithium-ion batteries, is a key enabler of this energy revolution. These batteries efficiently integrate intermittent renewable sources into the grid, providing stability, reliability, and backup power. As more countries embrace renewables and energy storage, lithium will play a central role in delivering a sustainable, decarbonized future.

By tapping into wind, geothermal, solar, biomass, and hydropower - and pairing them with sustainable energy storage - we can build a greener, more resilient energy system for generations to come.

A Sustainable and Holistic Approach to the Renewable Energy Transition

Parallel with the rapid growth of renewable energy and energy storage, it’s imperative to ensure that lithium extraction, a critical component of energy storage systems, is done sustainably. As lithium demand rises, we need to prioritize responsible practices that minimize environmental impact, lower carbon emissions, and protect local ecosystems.

Sustainable lithium extraction methods, like those used by Lithium Harvest, play a key role. By applying innovative technologies, Lithium Harvest and other responsible producers work to reduce water use, boost energy efficiency, and cut the carbon footprint of lithium production. These efforts help build a more environmentally conscious and socially responsible supply chain, supporting a truly sustainable transition to renewable energy.

Explore our sustainable lithium solution