Global long-duration energy storage (LDES) installations are expected to exceed 15 GWh in 2025, representing a 49% year-on-year increase, according to the latest Long Duration Energy Storage Trends report by Wood Mackenzie. Despite the rise in installed capacity, however, the sector continues to face significant challenges, including declining investment, growing competition from lithium-ion batteries, and the lack of suitable market frameworks to support commercial deployment.
Falling investment and financial pressure
Funding has also become a major concern for the sector. Global investment in LDES technologies declined by 30% year on year in 2025, excluding a $1.76 billion commitment from the US Department of Energy for projects by Hydrostor.
Venture capital funding has been hit even harder, falling by 72% in 2025. Between 2021 and 2025, only three companies – Hydrostor, Eos Energy Enterprises, and Form Energy – managed to raise more than $1 billion each, together securing over $4 billion. Even so, these companies continue to face significant financial pressures.
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