Nearly a decade ago, when large-scale battery storage was still an emerging concept, industry leaders set what seemed like an ambitious target: deploy 35 gigawatts of grid-connected battery capacity in the United States by the end of 2025. What once looked like a long-term milestone has now been surpassed well ahead of schedule. According to new data reported by Canary Media, the U.S. energy storage sector installed 4.7 gigawatts of capacity in the third quarter alone, pushing total deployment beyond 40 gigawatts — with months still left in the year.
This rapid acceleration has transformed energy storage from a niche segment into one of the fastest-growing pillars of the nation’s power system. Between July and September, batteries accounted for nearly half of all new renewable energy added to the grid. Federal Energy Regulatory Commission (FERC) data further shows that renewables have become the leading source of newly built capacity across the U.S. in 2024.
Much of this momentum stems from regions where grid stress has been particularly acute. Arizona, California, and Texas — states that have faced extreme heat, high demand, and reliability concerns — have led the rollout of advanced battery systems. Their progress offers a blueprint for other regions, particularly the Midwest and East Coast, which now face mounting strain from the rapid expansion of energy-intensive data centers.
Startups have embraced this surge with new solutions and business models. Redwood Materials, co-founded by Tesla veteran JB Straubel, recently expanded into repurposing used EV batteries for grid-scale storage after observing that many recycled packs still retained significant usable life. The company aims to deploy 20 gigawatt-hours of refurbished systems by 2028 and secured an additional $350 million from investors to scale the initiative.
In parallel, Austin-based Base Power is building a distributed virtual power plant by leasing batteries to homeowners and aggregating them into one coordinated system. With $1 billion in new funding, the company plans to build a manufacturing facility and expand outside Texas after already deploying more than 100 megawatt-hours of residential storage.
Beyond lithium-ion technology, innovators are pushing alternatives that could dramatically cut costs. Sizable Energy is developing grid-scale ocean-based storage reservoirs, while Fourth Power uses super-heated carbon blocks for thermal storage at projected costs lower than natural gas peaker plants. Flow-battery firm XL Batteries and long-duration storage company Cache Energy are also advancing technologies capable of storing energy for days, weeks, or even seasonally.
Collectively, these developments highlight an industry undergoing exponential growth. Coupled with low-cost solar and wind power, advanced energy storage is poised to fundamentally reshape electricity markets and modernize the U.S. grid for a cleaner, more resilient future.
