America is the birthplace of lithium ion technology and 85% of energy storage intellectual property belongs here in the U.S., and yet, 85% of the global battery supply is manufactured in Asia. Why? The U.S. creates most of the demand and has the capabilities to fulfill its own demand—so why don’t we? “The global advanced battery market is projected to grow beyond $450 billion over the next 25 years as a result of the added appetite for batteries from the vehicle and grid sectors: this is a global race to win – and it’s ours to lose,” suggests Judi Durand, battery and manufacturing proponent.

• Greensmith Energy has created a grid-scale energy storage system at the University of Arizona Science and Technology Park in Tucson.
Over the last 15 years, the battery market has grown from a $4-billion-per-year market in 2000, to a more than $20-billion-per-year market in 2016, based almost exclusively on lithium-ion adoption in consumer electronics. BUT, within just the next five years, the use of batteries for vehicles and grid applications will outstrip the annual consumption for all types of consumer electronics. We can seize the opportunity today to retain and grow current battery manufacturing capabilities, to meet the growing U.S. and global demand.
Also consider the military as a primary creator of the demand, who is on the record as having a growing need for energy storage on their military bases. By expanding investment, policies, legislation, training and infrastructure in advanced battery manufacturing today–which can be done quickly–we can accelerate job growth while watching our economy come roaring back. “We can modernize our grid and infrastructure, and be the leading force in the advanced energy economy….and we can do this today,” add Durand.
Durand also provided these details regarding regulatory quotas for energy storage:
- The current administration announced new executive actions that are expected to result in at least 1.3 GW of additional storage procurement or deployment in the next five years.
- California’s recent passage of AB 2868 will require the California Public Utilities Commission (CPUC) to direct California’s three investor owned utilities (IOU) to accelerate the deployment of distributed energy storage by filing applications for new programs and investments of up to 500 megawatts.
U.S. Energy Storage Projects (Underway or planned)
- Greensmith Energy has created a grid-scale energy storage system at the University of Arizona Science and Technology Park in Tucson. The site will provide frequency response and voltage control, along with solar integration for the new array.
- Greensmith Energy has partnered with Wärtsilä to deliver energy storage systems integrated with solar PV, and Wärtsilä smart generation power plants forming a hybrid energy solution. The Greensmith GEMS software system will fully control the entire system.
- The National Renewable Energy Laboratory (NREL) is working closely with the DOD on several key projects including one related to microgrid energy integration that integrates renewable generation and vehicle energy storage with load management components.
AES IPL System
- In May 2016, the Indianapolis Power & Light Company (IPL), a subsidiary of the AES Corporation, announced the commercial operation of the Advancion Energy Storage Array. The systems provide 20 MW of interconnected energy storage equivalent to 40 MW of flexible resource. Based at the Harding Street Station in Indianapolis, the system is the first grid-scale, battery-based energy storage system in the 15-state Midcontinent Independent System Operator (MISO) region. The system features Advancion pre-certified suppliers, including Samsung SDI and Parker Hannifin, and the balance of plant was provided by the Casteel Corporation.

The energy management system installed at the Navy’s Pacific Missile Range Facility in Hawaii holds the system’s main controller, advanced batteries (inset), and the human machine interface.
RES Systems in Illinois
This year, Colorado- based Renewable Energy Systems (RES) completed construction on the McHenry Storage Project, owned by EDF RE in McHenry, Illinois, which includes eleven containers of lithium ion batteries manufactured by BYD. The project reached commercial operation at the end of 2015 and adds 40 MW of flexible capacity (20 MW nameplates) to the PJM Regional Transmission Organization.
Number of battery manufacturers in Michigan
In Michigan, there are four notable manufacturers: A123 Systems develops and manufactures advanced Nanophosphate lithium iron phosphate batteries and energy storage systems. Michigan manufactures advanced battery cells for electric vehicles in Holland, Michigan. Sakti3, Inc., an Ann-Arbor based battery manufacturer, produces high-energy density lithium ion battery and was acquired by Dyson in October 2015. Xalt Energy manufactures advanced lithium-ion batteries with a focus on solutions to marine, commercial transportation, grid and stationary, industrial motive and automotive transportation needs. (Read Midwest Energy News to find out more.)
Energy storage deals & investments
Scale of Saft’s US manufacturing
French-battery manufacturer Saft has five manufacturing sites in the U.S. The company received a $95.5 million DOE grant to build a 235,000-square foot battery factory in Jacksonville, Florida, which created nearly 280 permanent jobs. Earlier this year, French oil-company Total SA acquired Saft as part of Total’s ambition to accelerate its development in renewable energy and electricity.
ENGIE/Green Charge Networks
French-based electric utility ENGIE acquired an 80% stake in Green Charge Networks, a Santa Clara, Calif.-based battery storage company.
Macquarie/AMS
Macquarie Capital will provide Advanced Microgrid Solutions (AMS) the project capital for the joint development and construction of a $200 million fleet of the company’s landmark energy storage projects. AMS’s first project will provide 300 MW-hours of capacity resources and demand management for customers in the West Los Angeles Basin service territory of SCE.
Filed Under: Energy storage, News