The global shift toward clean energy is advancing with remarkable speed, though progress remains uneven across sectors and regions. According to analysis, the physical transformation needed for the energy transition is advancing at approximately half the pace required to meet Paris Agreement targets aligned with limiting global warming. By the end of 2024, about 13.5% of low-emissions technologies needed to meet 2050 targets had been deployed—a modest improvement from just two years prior .
This progress has been particularly strong in three key areas: low-emissions power generation, transportation electrification, and critical mineral supply chains. In contrast, advancement has largely stalled in more challenging sectors including carbon capture, hydrogen fuels, and heavy industry decarbonization .
In the automotive sector, lithium-ion batteries are fundamental to the electric vehicle revolution. By 2025, the battery electric vehicle (BEV) market alone is projected to reach USD 72.58 billion . Government incentives worldwide, such as the U.S. Infrastructure Investment and Jobs Act which allocated $7.5 billion to establish a nationwide EV charging network, continue to drive this growth .
Improving Economics and Performance
Continuous innovation has steadily improved lithium-ion battery performance while reducing costs. Between 2023 and 2025, the global battery market grew from $25.02 billion to $32.63 billion, with projections suggesting it will reach $114.05 billion by 2032, representing a compound annual growth rate of 19.58% .
These improvements are particularly evident in the renewable energy sector, where lithium batteries solve the critical challenge of intermittency. As one analysis notes, "Solar panels only make power during the day. Wind turbines need windy weather to work. Lithium batteries fix this by saving extra energy" . This capability makes renewables significantly more reliable and grid-friendly.
The Critical Importance of Battery Safety
Growing Safety Challenges
As lithium-ion batteries become increasingly ubiquitous, safety concerns have moved to the forefront. Research published in 2025 by insurance company Aviva found that more than half of companies (54%) had experienced incidents linked to lithium-ion batteries, including fires and explosions . These incidents highlight that safety measures are not always adequately implemented, despite the perception of green energy as "clean, green and safe" .
The safety challenges extend across the entire battery lifecycle—from production and use to end-of-life disposal, which includes disassembling, transporting, and recycling, all of which pose distinct risks that must be assessed and managed . Recent safety incidents, such as the highly publicized Kilwinning battery recycling plant fire, have eroded public trust, which is extremely damaging and risks consequences for future investment .
A Collaborative Path to Safer Batteries
Addressing these safety concerns requires concerted collaboration between industry, academia, and regulatory bodies. As Dr. John Warner noted at the Battery Show South, safety remains paramount in battery development, reflecting what he referred to as "Bob Galyen's five golden rules" of battery design: "safety, performance, life, cost, and environmental impact" .
Research institutions like the National Renewable Energy Laboratory (NREL) are taking a safety-first approach to next-generation battery research. According to Donal Finegan, a senior energy storage scientist at NREL, "We are seeing key differences in the kinetics, toxicity, mechanical robustness, and fire-suppression strategies for new materials. The better we understand these risks, the safer we can design and prepare battery systems of the future" .
This research is crucial because, as Finegan notes, "Over the years, battery researchers and engineers have developed a deep understanding of the factors that lead to failure in conventional lithium-ion batteries. However, the behavior of next-gen batteries is not yet well understood" .
Navigating Challenges and Opportunities
Critical Mineral Supply Chains
Securing reliable access to essential battery materials remains a major hurdle for manufacturers. The industry faces ongoing pressure to reduce costs while maintaining performance and safety . As battery demand grows, so does competition for critical minerals like lithium, cobalt, and nickel.
Recycling presents a promising solution to these supply chain challenges. In Europe, recycling old batteries and manufacturing scraps could supply 25% of cobalt needs, 14% of lithium, 16% of nickel, and 17% of manganese by 2030 . This circular approach offers both economic and environmental benefits, with recycling processes cutting pollution by 81% and saving 89% of energy compared to virgin material extraction .
Policy and Regulatory Landscape
Government policies significantly impact the battery industry's trajectory, creating both opportunities and challenges. The rapid growth of domestic manufacturing capabilities represents a major opportunity for American companies to establish leadership in the battery space . Since August 2022, at least 160 clean energy manufacturing facilities or expansions have been announced in the U.S., driven by tax credits in the Inflation Reduction Act, with 47 announced in 2024 alone .
However, policy uncertainty remains a significant challenge. As one analysis notes, "With a new federal administration creating roadblocks for leasing and permitting wind energy, freezing funding, and threatening to upend policies like the Inflation Reduction Act and Bipartisan Infrastructure Law, it may become even harder to make progress" .
The Future of Energy Storage
Next-Generation Technologies
The battery industry continues to evolve beyond traditional lithium-ion technologies. Innovations like solid-state batteries, which use solid components instead of liquid ones, offer significant advantages including higher energy density, enhanced safety, and longer lifespan . These batteries can store over 400Wh/kg, making them ideal for electric vehicles and portable devices, while their non-flammable nature substantially reduces fire risks .
Other advancements include lithium iron phosphate (LFP) batteries, which offer improved thermal safety, and silicon anodes that increase energy capacity. By 2025, these innovations are expected to significantly enhance battery performance and longevity .
A Balanced Path Forward
The transition to clean energy represents both an unprecedented challenge and an extraordinary opportunity. While progress has been impressive in some sectors, much work remains to achieve our climate goals. The continued development of safer, more efficient battery technologies will be crucial to this transition.
As the analysis from BloombergNEF concludes, despite various challenges, "clean energy technologies will continue to grow. And the energy transition won't slow down, even if it feels hard at times" . The key, according to their assessment, is recognizing that "a successful transition is a profitable one" that generates risk-adjusted returns meeting the requirements of companies and their investors .
Conclusion
The clean energy transition, powered by advanced battery technologies, represents one of the most significant transformations in modern history. While challenges around safety, supply chains, and infrastructure remain substantial, the continued collaboration between researchers, industry leaders, and policymakers provides a clear path forward.
By prioritizing safety, investing in innovation, and building resilient supply chains, we can harness the full potential of lithium-ion batteries and renewable energy to create a sustainable, reliable, and clean energy future. The journey is complex and requires addressing both technical and practical considerations, but the destination—a decarbonized world with abundant clean energy—is undoubtedly worth the effort.
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