Global energy storage system prices hit record low as costs fall 31%
China remains the lowest-cost market by a wide margin. Average system prices there fell to $73/kWh in 2025, compared with $177/kWh in Europe and $219/kWh in the US.
Mainland China accounts for most of the global energy storage demand, driven in the near term by regional requirements for new utility-scale wind and solar projects to include energy storage capacity. However, the Chinese market is entering an era of change.
Ember provides the latest capex and Levelised Cost of Storage (LCOS) for large, long-duration utility-scale Battery Energy Storage Systems (BESS) across global markets outside China and the US, based on recent auction results and expert interviews. 1. All-in BESS projects now cost just $125/kWh as of October 2025 2.
The analysis focuses on markets outside China and the United States, where competitive procurement of Chinese-manufactured equipment is reshaping global storage economics. Ember's assessment of storage costs as of October 2025, based on recent auctions in Italy, Saudi Arabia and India and on expert interviews, shows:
Manufacturers typically oversize the installed capacity by at least 10%, allowing them to guarantee a 0–100% state of charge operating range. The price of Lithium Iron Phosphate (LFP) battery cells for stationary energy storage applications has dropped to around $40/kWh in Chinese domestic markets as of November 2025.
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