Geopolitical Risks, Dropping Prices are Shaping the Energy Storage Market

The energy storage sector is undergoing a transformative shift, with lithium iron phosphate (LFP) batteries taking center stage. Experts speaking ahead of the upcoming NetZero Milan Expo-Summit 2025 emphasize that LFP’s growing dominance has been driven by advantages such as enhanced safety, longer lifespan, reduced costs, and consistent performance.

Daniel Fuchs of EUPD Research noted that the growing scale of utility-based storage projects is also fueling advancements in storage density and scalability.

Giuseppe Artizzu, CEO of NHOA Energy, pointed out that while recent improvements in battery design have largely plateaued, the introduction of larger cells could lead to new innovations in system architecture. This evolution strengthens LFP’s position, posing a challenge to emerging chemistries like sodium-ion.

Fluence sales director for energy storage Rosa Milano highlighted that Li-ion was a commercially viable technology, with innovation focusing on grid integration, faster deployment, and greater operational reliability. She noted the rising importance of cybersecurity as digital integration in storage systems increases, especially amid geopolitical uncertainty.

Geopolitical tensions, particularly between the U.S. and China, are causing ripple effects across energy storage markets and the global battery supply chain.

In his statement, Fuchs warned that new tariffs or trade disruptions could hinder battery exports from China to America, where 25% of such exports were sent last year. Other global events, such as the Russia-Ukraine conflict or unexplained blackouts like the one in Spain and Portugal, may also shift European attitudes toward energy storage.

Meanwhile, traders like OrazioSallemi of BayWar.e. Energy Trading stress that while volatility presents profit opportunities, long-term uncertainty could slow market activity. To stay ahead, stakeholders may need to consider diversified supply chains, AI-driven optimization, and stronger recycling capabilities.

In addition, Artizzu expressed concern over Europe’s limited battery manufacturing base, warning that reliance on imports could extend to other strategic sectors like grid control and mobility. He emphasized that industrial policy, including initiatives like the Net Zero Industry Act, must guard against market distortions caused by underpriced foreign competition.

Latest figures show that in 2023, production costs declined to below $140/kWh. Analysts predict that continued innovation, including solid-state batteries and LFP development, could drive prices lower than $100/kWh by 2027. As costs fall and geopolitical dynamics evolve, energy storage remains at a critical crossroads.

The NetZero Milan Expo-Summit 2025 is being organized by FieraMilano and will run from May 14^th to 16^th in Milan, Italy.

For companies like Platinum Group Metals Ltd. (NYSE American: PLG) (TSX: PTM) looking to benefit from the growing market within the energy storage space, the geopolitical developments are likely to be of interest since they could impact the market for platinum group metals like palladium and rhodium.

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