Information and analysis provider IHS has published a report that states that the expected proliferation of electrical smart grids over the next decade will generate nearly $6bn in demand for lithium ion batteries used in energy storage.

The report said that worldwide revenue from sales of lithium ion batteries will surge to $5.98bn in 2020, up by a factor of over 80 from $72m in 2012.

“Smart grids require rechargeable batteries in order to be able to adjust to fluctuations in demand and to optimise the delivery of electric power throughout the system,” said Satoru Oyama, Principal Analyst of Electronics Research for IHS.

“With their inherent advantages compared to alternative technologies, lithium ion batteries are uniquely suited for use in smart grids. Because of this, lithium ion is set to emerge as the dominant rechargeable battery technology for electrical smart grids during the coming years.”

For more smart grid news click here