Batteries part of $1.8tn clean energy investment in 2023, says report

Batteries part of $1.8tn clean energy investment in 2023, says report

Batteries part of $1.8tn clean energy investment in 2023, says report 1024 683 Energy Storage Journal

February 1, 2024: Clean energy tech investment including equipment factories and battery metals production hit a new record of $135 billion in 2023 — up from just $46 billion in 2020, according to new analysis released on January 30.

Clean energy supply chains are split into clean-tech factories making equipment, and battery metal mines and refineries in Bloomberg NEF’s Energy Transition Investment Trends 2024 report.

Combined spending across those areas rose to $135 billion in 2023 and is set to surge, according to the report, with investment plans showing a 66% increase from 2023 to 2024, driven by a bulging pipeline of battery gigafactories.

Meanwhile, overall global investment in the low-carbon energy transition increased 17% in 2023, reaching a record $1.8 trillion.

The report said there was strong growth in emerging areas such as hydrogen (with investment tripling year on year), carbon capture and storage (near-doubling) and energy storage — which increased by 76% to $36 billion.

BNEF’s head of trade and supply chains Antoine Vagneur-Jones said abundant supply chain investment should continue to reduce equipment prices across most sectors, which is good news for the energy transition.

But the “ensuing oversupply heralds an era of squeezed margins for solar and battery manufacturers”.

BNEF deputy CEO Albert Cheung said despite the 17% growth in energy transition investment, the amount needs to grow more than 170% if the world is to get on track for net zero in the coming years.

Graphic: BloombergNEF