Major breakthrough! The tech giant's latest announcement! Two major developments in the hot industry sector!

The energy storage sector is ushering in two major drivers!

According to foreign media reports, tech giant Google recently announced that it will adopt innovative “iron-air batteries” energy storage technology at a large data center campus in Minnesota. This move is seen as a watershed moment in the battery industry.

Additionally, some brokerages have stated that regions such as Europe and Australia are experiencing a new wave of high growth. Continuous subsidies in Australia are energizing residential storage, making it a key driver; the UK has introduced remarkable subsidies before the end of the year, potentially becoming a new engine; demand in Ukraine is recovering, and Poland launched a new round of residential solar and storage subsidies at the end of January.

Today (25th) in the afternoon, the energy storage sector also saw a major surge. Delonghui Energy opened with a straight limit-up; Xiongtao Co., Ltd. soared in the afternoon, approaching the daily limit, closing with a gain of over 7%. The Huixianfu Battery ETF surged over 2% in the afternoon.

Major Breakthrough

According to media reports, Google is heavily investing in “iron-air batteries.” These newly developed devices can provide stable power for up to 100 hours. Compared to the current mainstream lithium batteries, which last only 4 to 8 hours, this technology significantly extends the lifespan of green energy facilities.

Google plans to collaborate deeply with Xcel Energy, a Minnesota-based utility, to build a total of 1.9 gigawatts (GW) of clean energy systems, including financing plans for large wind and solar farms. The core highlight of this green energy blueprint is a 300-megawatt (MW) battery system developed by Massachusetts startup Form Energy.

Form Energy’s “iron-air batteries” operate on a unique principle, generating electricity through chemical reactions involving oxygen, water, and iron powder, similar to rusting metal. More innovatively, when recharging, the system can perform “de-rusting” to restore its energy storage capacity for future use.

Since traditional lithium batteries struggle to support 24-hour operation, iron-air batteries with 100-hour storage potential enable renewable energy to maintain stable supply for days even under cloudy or windless conditions, achieving true all-day green power.

Compared to lithium, iron has several advantages, including abundant reserves and lower costs. Form’s CEO Mateo Jaramillo stated that iron batteries could cost only one-tenth of lithium batteries. However, their drawback is less suitable for rapid power transmission in the grid. Therefore, Jaramillo said Google’s facilities will adopt a “hybrid strategy,” deploying both lithium and iron batteries. The former handles short-term peak demands, while the latter provides long-term support, each playing its role.

He noted that in extreme conditions like high temperatures causing grid stress and prolonged high demand, “iron-air batteries” are particularly suitable. Grid operators are especially concerned about such peak times, which could trigger blackouts. Data center developers capable of deploying long-duration energy storage to help utilities stabilize power supply are expected to gain grid connection approval more quickly.

Last year, Form Energy delivered small-scale energy storage systems to another Minnesota utility, and this agreement with Google is over 200 times larger than that initial delivery.

Is a New Wave of High Growth Starting?

From the domestic perspective, Huafu Securities pointed out that in January, the production and sales of power and energy storage batteries grew rapidly year-on-year. In January, China’s total production of power and energy storage batteries reached 168.0 GWh, up 55.9% year-on-year. Sales totaled 148.8 GWh, an increase of 85.1%. Among them, power batteries accounted for 102.7 GWh (69.0%), up 63.2% year-on-year; energy storage batteries totaled 46.1 GWh (31.0%), up 164%. In January, China’s total exports of power and energy storage batteries were 24.1 GWh, up 38.3% year-on-year, accounting for 16.2%.

Meanwhile, positive signals continue from overseas. Some brokerages say large-scale storage is essential for grid-connected power infrastructure and offline power use. The US and European power systems are entering a 60-year Kondratiev cycle, reflecting both increased grid demand and stronger, sustained storage needs. Industry sources indicate that overseas energy storage companies are experiencing strong orders, especially for residential and industrial storage, with many companies ramping up production significantly in the first half of this year.

Additionally, domestic leading lithium battery companies have adjusted their production plans downward slightly from February to March, with March expected to see record-high production intensity. The core demand divergence currently lies in the domestic electric vehicle market, which requires further observation of sales data in March and April. It’s also worth noting that domestic and international energy storage demand may surpass expectations. If demand outlook improves, the lithium material sector could once again enter a prime growth phase.

Dongwu Securities stated that the national capacity compensation electricity price policy has been introduced, with detailed rules and lists expected from various provinces. The demand for large-scale storage is strong, with over 60% growth projected by 2026. The US’s Build Back Better Act is expected to drive unexpected rapid installations in 2025, coupled with explosive growth in data center energy storage starting in Q4 2025. Europe, the Middle East, and other emerging markets are experiencing a surge in large-scale storage demand, maintaining high growth; residential storage decommissioning in Europe has been completed, shipments are recovering, and industrial storage demand is beginning to explode. Emerging markets continue to grow, with global energy storage installations expected to increase by over 60% by 2026, and a compound annual growth rate of 30-50% from 2027 to 2029.

(Source: China Securities Journal)