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Sustainability Matters
Battery Energy Storage Systems, the
missing piece in the renewables puzzle
Equity Strategy

BESS, the backbone of the clean energy transition 26 March 2025

The transition to net-zero requires a significant increase in renewable energy capacity by Equity and Quant Strategy
2030, requiring energy storage solutions like Battery Energy Storage Systems (BESS) to Global
address the intermittency of solar and wind power. Batteries are crucial for grid stability, Sustainability
balancing supply and demand, and enabling the efficient use of renewable energy while Xavier Le Mene >>
reducing reliance on fossil fuel backups. Sustainability Strategist
MLI (UK)
+44 20 7996 7591
>21% 2024-2030 CAGR for global BESS, led by Asia xavier.le_mene@bofa.com
At the initiative of 29 member countries with 90% of installed renewable power Alexandre Roncier, CFA >>
Research Analyst
generation capacity, the Clean Energy Ministerial's Supercharging Battery Storage MLI (UK)
Initiatives (SBSI) launched in 2023 at COP 28 aims to accelerate the development of +44 20 7995 1813
alexandre.roncier@bofa.com
BESS development globally. Overall, the global BESS market is projected by
Menka Bajaj >>
BloombergNEF to reach at least 520Wh by 2030, growing at above 21% CAGR from Sustainability Strategist
2024. Asia is expected to dominate the market, accounting for 46% of global MLI (UK)
+44 20 7995 5800
installations, though North America is rapidly embracing BESS solutions relative to its menka.bajaj@bofa.com
renewable energy production and Europe follows. The latter may however benefit from
the EU Clean Industrial Deal (CID) State Aid Framework supporting clean technology
investments, including battery.
BESS: Battery Energy Storage
Raw materials and recycling are key challenges System
BESS include several raw materials and challenges persist in securing these materials
like lithium, cobalt, and nickel. The EU and the US are heavily dependent on a limited CID: Clean Industrial Act
number of country suppliers and, as such, diversifying supply chains becomes crucial.
The EU reiterated in the CID, the aim to prioritize the implementation of the Critical Raw COP: the 28th meeting of the
Material Act while in the US, the IRA includes many Metals Important for Future Conference of the Parties
Technologies (MIFTs) critical for the energy transition. Recycling of battery is similarly IRA: Inflationary Reduction Act
becoming increasingly important as it is key to sustainability but also key to the
economic model. The EU and US are implementing regulations to address environmental SBSI: Supercharging Battery Storage
concerns and promote a circular economy, with a focus on recovering critical materials. Initiatives
The EU targets 50% lithium recovery, 90% of cobalt, copper, lead and nickel from waste
batteries by the end of 2027.

Ten companies leading the BESS market

The battery industry is dominated by a few key players, with a growing number of firms
specializing in BESS production and components. Ten companies are controlling 61% of
global BESS capacity today of which six are listed. We screen 86 listed companies
supplying at least two BESS projects worldwide, another 29 companies seen as pure
players in battery storage and lastly, in the context of the EU Clean Industrial Deal,
European companies supplying the battery industry and eligible to subsidies, going
forward.

Trading ideas and investment strategies discussed herein may give rise to significant risk and are
not suitable for all investors. Investors should have experience in relevant markets and the financial
resources to absorb any losses arising from applying these ideas or strategies.
>> Employed by a non-US affiliate of BofAS and is not registered/qualified as a research analyst
under the FINRA rules.
Refer to "Other Important Disclosures" for information on certain BofA Securities entities that take
responsibility for the information herein in particular jurisdictions.
BofA Securities does and seeks to do business with issuers covered in its research
reports. As a result, investors should be aware that the firm may have a conflict of
interest that could affect the objectivity of this report. Investors should consider this
report as only a single factor in making their investment decision.
Refer to important disclosures on page 22 to 23. 12809552

Timestamp: 26 March 2025 06:00AM EDT

BESS in 6 charts and 10 stocks
Exhibit 1: Plan is to triple the production of renewable energy by 2030 Exhibit 2: Battery Energy Storage Systems serve multiple functions
From 4,244GW in 2023, the IEA plans close to 10,000GW by 2030 in Usage and benefits of BESS
renewable energy
12,000 Hydro Bioenergy Benefit
Offshore wind Onshore wind Enhancing grid reliability
8,000 PV utility-scale systems PV distributed systems Grid stability and frequency regulation
Other Capacity and peak load shaving
4,000 Transmission and distribution delay
Backup power.
0
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Source: BofA Global Research
BofA GLOBAL RESEARCH
Source: IEA
BofA GLOBAL RESEARCH

Exhibit 3: Asia to lead battery stationary storage capacity Exhibit 4: Up to $150bn investment in 2030 in BESS
BESS capacity per region Market value and battery stationary storage capacity

Asia North America Europe Rest of the World 300 800

100% Low/High BESS capacity
9%

Added BESS capacity (GWh)

16% Low - market size
600

Market size ($bn)

16% High - market size
75% 16% 200
23% 16% 400
50%
100
25% 52% 52% 200

0% 0 0
2023 2030 2023 2024 2025 2026 2027 2028 2029 2030
Source: Bloomberg NEF Source: McKinsey & Company, McKinsey Energy Storage Insights BESS market model
BofA GLOBAL RESEARCH BofA GLOBAL RESEARCH

Exhibit 5: 336 companies globally… Exhibit 6: … but TOP 10 accounts for 61% of the overall capacity
Number of companies developing BESS projects Top 10 capacity in percentage of total adjusted capacity
450 80%
336 61.1%
60% 47.4%
300 41.0%
177 40%
150 86
20%

0 0%
Overall number of Total with 2 projects Listed with 2 projects Top 10 6 companies listed Top 10
companies (listed + non-listed) within Top 10 listed companies

Source: Bloomberg NEF, BofA Global Research Source: Bloomberg NEF, BofA Global Research
BofA GLOBAL RESEARCH BofA GLOBAL RESEARCH

Exhibit 7: Top 10 listed companies manufacturing BESS, by capacity

One US leader but China leading the race overall
BofA Ticker Company Sector Country Market cap (USDmn) No of projects Capacity (MWh)
TSLA US Tesla Inc Consumer Discretionary United States 895,446 202 29,547
300750 CH Contemporary Amperex Technology Co Ltd Industrials China 157,315 263 17,904
002594 CH BYD Co Ltd Consumer Discretionary China 153,625 93 8,204
300014 CH Eve Energy Co Ltd Industrials China 13,787 136 7,370
CSIQ US Canadian Solar Inc Information Technology Canada 627 24 6,960
051910 KS LG Chem Ltd Materials South Korea 12,472 151 5,061
300068 CH Zhejiang Narada Power Source Co Ltd Industrials China 2,129 70 3,325
ENR GY Siemens Energy AG Industrials Germany 50,441 4 2,866
WRT1V FH Wartsila OYJ Abp Industrials Finland 11,944 4 2,848
300438 CH Guangzhou Great Power Energy & Technology Co Ltd Industrials China 1,917 35 2,666
Source: Bloomberg NEF, BofA Global Research
BofA GLOBAL RESEARCH

2 Sustainability Matters | 26 March 2025

Prospects and challenges of BESS
BESS is the missing piece in the renewables puzzle
Transition to net-zero = more renewable energy
Cutting carbon emissions and/or using carbon removal offset to produce a minimal
amount of CO2 that can be absorbed and stored by nature is crucial to preserve a
liveable planet. Global temperature increase needs to be limited to 1.5°C above pre-
industrial levels, requiring emissions to be reduced by 45% by 2030 globally and reach
net zero by 2050 (source: United Nations).

The transition to a net-zero emission world requires a complete transformation of the

energy system, moving away from fossil fuels toward renewable energy sources like
solar, wind, and hydro. Following the UN Climate Summit (New York, summer 2023),
almost 200 governments agreed at the COP28 in Dubai to triple renewable energy
capacity by 2030 and to double energy efficiency progresses at the same time.

Exhibit 8: Plan is to triple the production of renewable energy by 2030

From 4,244GW in 2023, the IEA plans close to 10,000GW by 2030 in renewable energy

12,000
Hydro Bioenergy Offshore wind Onshore wind PV utility-scale systems PV distributed systems Other

8,000

4,000

0
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Source: IEA 2023, Renewables 2023, CC BY 4.0
BofA GLOBAL RESEARCH

Wind and solar too dependent on elements

The aim of tripling renewable energy production is not, however, without challenges.
Delivering the target requires modernising the electric grid while scaling up. We already
elaborate on the electricity distribution bottleneck (See our report The evolution of ESG:
Energy transition, impact investing and governance in focus 20 January 2025) and:

• the difficulties to adapt an historical centralised infrastructure to a new

decentralised model;

• the need for a significant refurbishment of the existing electric infrastructures

which are more than 40 years old in Europe and North America;

• the requirement for more capacity to connect the increasing renewable energy
supply.

The second challenge ahead is enabling a clean, reliable, and flexible power grid utility.
Solar power generation depends on sunlight, meaning no energy is produced at night,
and production decreases on cloudy days. The same apply to wind energy as power
generation varies depending on wind speed, leading to fluctuations in power output.
Unlike fossil fuel power plants, both wind and solar energies can destabilize the grid and
cannot be turned on or off at will to match electricity demand.

Without energy storage, excess renewable energy is wasted, and fossil fuel base power
plants are needed as backup slowing down decarbonisation efforts. In this context, we
think the industry needs to start more closely addressing the missing piece in the
renewables puzzle: storage, in particular through the help of batteries.

In principle, Battery Energy Storage Systems (BESS) are used across the entire energy
landscape. BESS capture energy from a renewable or/and non-renewable source and

Sustainability Matters | 26 March 2025 3

store it for a later usage. BESS can be found Behind-The-Meter or Front-Of-The-Meter.
The former refers to the battery located on the user’s side like a building or a hospital
while the latter is on the utility side. Front-of-the-meter BESS are large scale storage
units used to supply the grid.

Batteries can help smooth the intermittent profile of renewable power markets, easing
concerns about merchant exposure and improving long-term monetization. Plus, longer-
duration batteries combined with solar and wind can ultimately offer quasi-baseload (for
some capacity at least) which is a necessity for many industries, including data centres
and artificial intelligence.

Exhibit 9: Illustrative power market flows across three days (MW load)
Batteries can smooth intermittent resources and strengthen the grid

300
Solar Wind Grid Charging Curtailed Battery

200

100

0
H0
H3
H6
H9
H12
H15
H18
H21
H0
H3
H6
H9
H12
H15
H18
H21
H0
H3
H6
H9
H12
H15
H18
H21
Source: BloombergNEF
BofA GLOBAL RESEARCH

Overall, Battery Energy Storage Systems serve multiple functions in enhancing grid
reliability, optimizing efficiency, and reducing emissions for both utility-scale and
behind-the-meter applications.

Table 1: Battery Energy Storage Systems serve multiple functions

Usage and benefits of BESS
Benefit Comment
Batteries enable energy storage and redistribution over time. This ability is particularly valuable in a grid where electricity supply and demand do not align, where
Enhancing grid renewable generation can be unpredictable, and where extreme weather events are becoming more frequent. By capturing surplus solar and wind energy and discharging
reliability it during peak demand periods, BESS enhance the value and deployment of renewable power sources, cut emissions from fossil fuel-based generation used for back-up,
and unlock revenue opportunities through energy arbitrage.
Grid stability and
Grid frequency and voltage fluctuations can occur due to power outages or sudden spikes in demand. BESS play a crucial role in ancillary services by responding almost
frequency
instantaneously to inject or absorb power, helping to stabilize frequency and voltage levels across the grid.
regulation
Capacity and peak During periods of high electricity demand, BESS can supply power to reduce reliance on the most expensive and highly polluting back-up plants, which are typically gas-
load shaving fired. This not only lowers energy costs but also significantly reduces carbon emission.
Transmission and Instead of investing in costly new transmission and distribution infrastructure, utilities can use BESS to address grid capacity challenges in a more economical way. By
distribution delay deferring or even eliminating the need for major grid upgrades, BESS offers a cost-effective alternative to expanding physical infrastructure.
BESS also provides reliable backup power for residential, commercial, and industrial users. In critical facilities such as hospitals and data centres, BESS can be deployed as
Backup power
part of a microgrid or in a standalone configuration to ensure continuous power supply during outages.
Source: BofA Global Research
BofA GLOBAL RESEARCH

EU commitment to promote enabling technologies, including BESS, is intact…

With the Clean Industrial Deal announced on 26th February 2025, the European Union
(EU) is reinforcing its commitment to clean technologies. The aim of the new green deal
is to accelerate the clean transition, to ensure hard-to-abate emission industries have
access to affordable green energy while maintaining economic competitiveness.

4 Sustainability Matters | 26 March 2025

The Clean Industrial Deal combines legislative reforms, financial incentives, and
industrial support mechanisms with actions in reducing permitting times for renewable
energy, grid infrastructure, and energy storage projects.

Echoing the initial Net-Zero Industry Act (NZIA) launched in February 2023 as a reply to
the US IRA, and to encourage private investment in decarbonization, the EU is still
focusing on lead markets for clean technologies. The expectation is that by driving
economies of scale, these markets will lower costs, enhance competitiveness, and
strengthen the EU's global leadership in sustainable industries. Although the EU Clean
Industrial Deal is not exhaustively listing technologies, as it did for the NZIA, most of the
initial thoughts remains.

Table 2: Most technologies listed in the NZIA remain in the Clean Industrial Deal
Batteries and storage technologies are still key priorities for the EU
NZIA Mentioned in the Clean Industrial Deal
Solar photovoltaic and solar thermal technologies Renewable energy
Onshore and offshore renewable technologies Renewable energy
Battery/storage technologies Battery/storage technologies
Heat pumps and geothermal energy technologies
Electrolysers and fuel cells Hydrogen
Sustainable biogas/biomethane technologies
Carbon Capture and storage (CCS) technologies Carbon Capture and storage (CCS) technologies
Grid technologies Grid technologies
Sustainable Aviation Fuel (SAF) Low-carbon fuels for aviation
Nuclear Small Modular Reactors (SMRs) / Fusion
Source: BofA Global Research, EU
BofA GLOBAL RESEARCH

… and strong commitment in BESS globally…

The integration of renewable energy sources has created a significant demand for
energy storage solutions. The industry is still relatively nascent, but deployments are
stepping up.

The Clean Energy Ministerial (29 member countries with 90% of installed renewable
power generation capacity) launched the Supercharging Battery Storage Initiatives
(SBSI) in 2023 at COP28. The SBSI’s main goal is to accelerate the development of
Battery Energy Storage Systems globally.

The global BESS market is projected to reach close to 520GWh by 2030 according to
Bloomberg NEF base case scenario, growing at a CAGR of 20.7% from 2024. McKinsey
estimates are more optimistic with a range between 520GWh and 700GWH by 2030
(25.4% 2024-30 CAGR) for up to $150bn investment in 2030. The latter is more
consistent with BNEF net-zero and more optimistic scenario of 33.8% CAGR (2024-30)
and 913GWh of BESS capacity by 2030.

Sustainability Matters | 26 March 2025 5

 Exhibit 10: 20.7% CAGR (2024-30) for stationary storage for BNEF Exhibit 11: Up to $150bn investment in 2030 with above 520GWh
base case scenario, with 521GWh capacity added
Battery stationary storage capacity (GWh) per region Market value and battery stationary storage capacity

600 300 800

Asia North America Europe Rest of the World Low/High BESS capacity
Low - market size

Added BESS capacity (GWh)

450 High - market size 600

Market size ($bn)

200

300 400

100
150 200

0 0 0
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2023 2024 2025 2026 2027 2028 2029 2030
Source: Bloomberg NEF Source: McKinsey & Company, McKinsey Energy Storage Insights BESS market model
BofA GLOBAL RESEARCH BofA GLOBAL RESEARCH

Asia is expected to dominate the market by 2030, accounting for 52% of global
installations. North America and Europe should be almost at par with c.16% of the
2030e capacity (Exhibit 3).

… though Asia is at the forefront of BESS

Asia is dominating the development of battery storage. In 2024, 24.7GW capacity of
BESS were commissioned in Asia with 95% in China, comparing with 14.2GW in North
America and only 2.4GW in Europe (including the UK).

Exhibit 12: EU BESS projects up from low Exhibit 13: N-Am. steady new capacity Exhibit 14: Asia far above thanks to China
base Energy storage assets commissioned p.a. (GWh) Energy storage assets commissioned p.a. (GWh)
Energy storage assets commissioned p.a. (GWh)
18 120
US Canada China Australia S.Korea
3 Taiwan Japan Mongolia
Italy UK Ireland
Sweden Bulgaria Netherlands India Malaysia Philippines
France Romania Denmark Thiland Other
Latvia Other 12

60
1.5
6

0 0
0 2018 2019 2020 2021 2022 2023 2024 2018 2019 2020 2021 2022 2023 2024
2018 2019 2020 2021 2022 2023 2024
Source: BloombergNEF Source: BloombergNEF
Source: BloombergNEF BofA GLOBAL RESEARCH BofA GLOBAL RESEARCH
BofA GLOBAL RESEARCH

Interestingly, North America has, in relative terms, more energy storage capacity
compared to its overall renewable energy production (47%) than the other regions. Asia
and Europe are almost at par (15% and 12% respectively) and significantly behind North
America. The latter has been anticipating the intermittent profile of renewable power
issues far ahead of its peers. China is, with no doubt, willing to close the gap thanks to a
significant step-up of the energy storage assets commissioned in the last two years
(Exhibit 14).

6 Sustainability Matters | 26 March 2025

 Exhibit 15: North America is embracing the challenges of BESS faster than other regions, relatively
BESS in place compared to renewable power production. US BESS capacity is 47% of the production capacity

80
Battery demand

60 Asia
(GWh)

40 N. America
20 LatAm
EU
0
0 100 200 300 400 500
Renewable power (GWh)

Source: BofA Global Research, Bloomberg NEF, IEA 2023, Renewables 2023, CC BY 4.0
BofA GLOBAL RESEARCH

The prospect of BESS

Batteries introduced in all key legislations
Batteries are a key enabling technology for transportation and the shift to electric
vehicles, and to a lesser extent, for BESS. As such, policies for battery development have
been introduced in all key legislations, starting in Europe in 2017. The European
Commission launched the European Battery Alliance to establish a sustainable and
competitive battery value chain. Since then, regulatory frameworks worldwide have
evolved to address environmental concerns, battery sustainability, and the circular
economy. Strict regulations now govern the production, recycling, and disposal of
batteries to minimize their ecological impact.

Table 3: EU and US regulation on batteries

From manufacturing to recycling
Region Regulation Comment
EPA's Battery Recycling and Reuse • The Environmental Protection Agency (EPA) regulates battery manufacturing and disposal under the Resource Conservation and
Programs Recovery Act (RCRA). Aim to minimize landfill waste and promote circularity
Energy Storage Tax Incentive and
• This bill allows tax credits for energy storage technologies and battery storage technology
Deployment Act of 2021
US
Bipartisan Infrastructure Law • Allocates funding for battery recycling and sustainable manufacturing.
Battery Act of 1996 • Governs the proper recycling of lead-acid and lithium-ion batteries.
• Leads state-level initiatives with stricter recycling and Extended Producer Responsibility (EPR) policies for battery producers. It requires
State-level programs
manufacturers to fund battery recycling and meet ESG transparency standards.
• Carbon Footprint Transparency: Mandates that battery manufacturers disclose the carbon intensity of production.
• Mandatory Recycled Content: By 2030, batteries must contain at least 12% recycled cobalt, 4% lithium, and 4% nickel.
• Due Diligence Requirements: Companies must demonstrate responsible sourcing of raw materials, aligning with OECD standards
EU Battery Regulation (2023)
• Circular Economy Goals: Batteries must meet strict recycling efficiency targets, with a 95% recovery goal for critical metals like cobalt by
2030.
• REACH and RoHS: Ensure the elimination of hazardous substances in batteries.
EU
Battery Manufacturing • Specific credits for manufacturers producing batteries with a focus on low-carbon processes
Circular Economy Funding • Subsidies for companies involved in battery recycling and second-life applications
Net Zero Industry Act • Horizon Europe: Funds R&D projects focused on next-generation ESG-compliant battery technologies.
EU Taxonomy • Classifies battery-related activities (e.g., production, recycling, and storage) as "sustainable investments"
• Energy storage to be at the forefront with the upcoming Industrial Decarbonisation Accelerator Act
EU Clean Industrial Deal
• EU Commission to adopt a Circular Economy Act in 2026
Source: BofA Global Research
BofA GLOBAL RESEARCH

In 2022, the US adopted several policy measures under the Inflation Reduction Act (IRA)
to support domestic cell and EV production. This act heavily subsidizes US production,
driving at least $80bn in new battery supply chain investments in 2023 and 2024. As a
result, investment in cell production facilities has shifted significantly to the US. The EU
has been following with the Net Zero Industry Act in February 2023 although subsidies
have been flowing at a lower pace compared to the US.

The EU Clean Industrial Deal State Aid Framework will also be a major pillar supporting
clean technology investments going forward. The framework simplifies State aid
approval for clean technology projects, introduces standardized support mechanisms,
and facilitates investments in wind, solar, and battery manufacturing. A key focus is

Sustainability Matters | 26 March 2025 7

scaling up battery production to enhance the EU's strategic autonomy. The updated
State aid rules will support investments in net-zero battery manufacturing capacity,
addressing funding gaps for industrial projects.

Table 4: Various plans to support the development of the battery industry

The US, with its tax credit scheme, has made access to incentive easy and quick to develop. Europe is lagging so far.
Region Program Comment
• Investment tax credits (ITCs) of up to 30% for standalone energy storage projects
US Inflationary Reduction Act (IRA) • Domestic manufacturing incentives for battery components, including tax credits for production
• Research and development (R&D) grants for next-generation battery technologies
• Horizon Europe: €95.5bn allocated for R&D, including battery technologies
• European Battery Alliance (EBA): Supports the development of a competitive battery value chain within the EU
EU Green deal and REPowerEU • Subsidies for recycling and second-life battery initiatives under the EU Green Deal
• Specific credits for manufacturers producing batteries with a focus on low-carbon processes
EU
• Subsidies for companies involved in battery recycling and second-life applications
Net Zero Industry Act • Horizon Europe: Funds R&D projects focused on next-generation ESG-compliant battery technologies
• Energy storage to be at the forefront with the upcoming Industrial Decarbonisation Accelerator Act
EU Clean Industrial Deal
• launch of the Clean Energy Investment Strategy with EU subsidies
China • Heavy investments in domestic battery production under its Five-Year Plan
• Subsidies for battery recycling and second-life applications
Asia Japan GX (Green Transformation) • Provides subsidies for renewable energy storage and recycling technologies
Strategy • Incentivizes R&D in advanced solid-state and lithium-ion batteries
India • Production Linked Incentive (PLI) scheme for advanced battery manufacturing
Source: BofA Global Research
BofA GLOBAL RESEARCH

Concretely, the US IRA permitted to reduce battery cost in the US down to enabling
domestic production to achieve cost parity with China. Battery cost in Europe remains
40% more expensive than its competing regions according to the European Battery
Alliance.

Table 5: The EU has been using the Innovation Fund financed by EU ETS revenues to provide subsidies for the battery industry
EU projects in batteries funded by the Innovation funds since 2022
Project Sector Location Technology
BESS4HYDRO Intra-day electricity storage Italy Battery Energy Storage System (BESS) integrated in an existing Storage Hydropower Plant
HSS-Gen2 Manufacturing of components for ES Germany Hydrogen storage system for use in heavy duty trucks
CAMELIA Manufacturing of components for ES Finland Battery Cathode Active Material
GALLICAM Manufacturing of components for ES France Battery precursor cathode active material
NorthCYCLE Manufacturing of components for ES Sweden Hydrometallurgical battery recycling
LiTH.OS Manufacturing of components for ES Greece Battery cells
TalnodeONE Manufacturing of components for ES Sweden Anode material for lithium-ion batteries
NEFO Manufacturing of components for ES Spain Wind turbines, advanced battery storage units, and modern power converters
ScaleUp Other energy storage Austria Underground thermal energy storage
Norberg Mine Storage Intra-day electricity storage Sweden Underground pumped storage hydropower plant
MITIGAT Other energy storage France Smart grid, making sustainable energy from heat saving
RockStore Other energy storage Denmark Thermal energy storage, accessible and cost-effective thermal energy storage
ELAN Manufacturing of components for ES Norway Battery components, upscaling Vianode innovative synthetic graphite production technology
Giga Arctic Manufacturing of components for ES Norway Battery cells
BASF Battery Recycling Tarragona Non-ferrous Metals Spain Battery recycling materials
Source: BofA Global Research
BofA GLOBAL RESEARCH

Sodium-ion battery is a promising technology for BESS

There are currently several technologies supporting energy storage. From lightweight
and fast charging with lithium-ion to long lasting and cheaper solution like gravity, the
different technologies can be used in electric infrastructure to supply the grid (see Table
12 in Appendix).

According to BofA US chemical analyst, sodium-ion batteries should develop

significantly in the next 5+ years. They are seen as a potential substitute for lithium-ion
batteries due to global supply abundance and potentially higher safety compared to
lithium-ion batteries (see report: Lithium battery conference takeaways: Government
Policy, Market Expectations 19 November 2024). There manufacturing cost is still a

8 Sustainability Matters | 26 March 2025

barrier, but overtime, economy of scale may help reducing cost for sodium-ion while
energy storage is not as dependent on space efficiency as the mobility market.

Economy of scale should help the economics of batteries longer-term

BESS system prices have been falling for most of the past decade. They’ve benefited
from the massive build-out of battery production capacity for the EV market and the
experience curve cost reductions that come from it.

Meanwhile, raw materials account for most of the battery costs, particularly lithium. The
sharp decline in lithium prices following the 2022-2023 price surge has also been a
primary driver of the cost reductions. Additionally, improvements in automation,
manufacturing efficiency, and advancements in battery pack and module design have
significantly lowered operational expenses. The massive expansion of Li-ion cell
production in China has further saturated the market with supply, intensifying
competition among manufacturers too.

Exhibit 16: Economy of scales reducing the production cost of lithium-ion batteries
Production cost of lithium-ion batteries ($/kWh, left HS)) and price of raw materials

450 Cobalt sulfate Lithium carbonate Nickel sulphate 120

Manganese flake Phosphoric acid Battery pack price

300 80

150 40

0 0
Jan-15 Nov-15 Sep-16 Jul-17 May-18 Mar-19 Jan-20 Nov-20 Sep-21 Jul-22 May-23
Source: IEA
BofA GLOBAL RESEARCH

The recent fall in BESS pricing contributed to energy storage system prices to drop by
40% in 2024 from $275/kWH to $165, according to Bloomberg NEF data. Battery
storage should thus play its part in reducing energy costs by offering competitive
solutions to grid problems and the intermittence of renewable energy sources.

Using Bloomberg NEF forecast for lithium-ion batteries as a proxy, we should expect the
cost for batteries to significantly decline over time thanks to economy of scale and the
overall capacity increasing. The price is expected to reduce by 40% by 2030 and 54% by
2035 compared to 2023.

The International Energy Agency also expects battery prices to continue to decline in the
long term, thanks to ongoing improvements in Li-ion battery performance and the
progresses of sodium-ion and solid-state technologies. The trend may however be
challenged by the 25% tariffs introduced by the new US administration, which could
significantly disrupt the downward pricing trend, at least in the US.

BofA US Clean Energy analysts believe that solar’s levelized cost of energy (LCOE) is a
highly attractive technology to produce electricity, with price per MWh ($35) well below
any competing technology. The incremental costs to add 4-hours stationary storage to
the system, (battery, balance of system, energy management, higher labour cost,
engineering, and developer costs) bring the overall cost to c$85/MWh, making the
solution still competitive. But to practically utilize just wind and solar with storage as a
complete solution without grid access would not be competitive yet. According to BofA
analysts, adding up to 8 hours of lithium-ion batteries today would increase the LCOE to
c$105/MWh which is above the midpoint of Wood Mackenzie’s estimated range for

Sustainability Matters | 26 March 2025 9

combined cycle natural gas turbines of $61-127/MWh and their estimate for the LCOE
of solid oxide fuel cells utilizing natural gas of $103/MWh (see report: US Clean Energy
& Sustainability: Datacenter power play: balancing cost, speed and reliability 10 March
2025). As such, we need to see the price of batteries significantly reducing overtime for
the overall equation of renewable and BESS to be resilient enough and come as a full
substitute of fossil fuel solutions, including backup.

10 Sustainability Matters | 26 March 2025

Environmental and socio-economic
sustainability challenges
Significant ESG challenges for the battery value chain
Like other industrial sectors, the value chain of BESS faces significant ESG challenges.
McKinsey identified 21 ESG risks.

Exhibit 17: Manufacturing BESS is not without ESG challenges

21 ESG risks identified with battery manufacturing
Environmental Social Governance
Risk in extracting and refining raw materials and Risk of operations having negative effects on Risk of conflict of interests or bad management
cell production communities practices
Greenhouse-gas emissions Need to ensure health and safety Warlords or terrorists
Air pollution Child or forced labour Corruption and bribery
Water pollution Need to ensure fair working conditions and wages Need for sustainable supplier management
Land pollution Discrimination and Harassment Anticompetitive practices
Radioactive pollution Need to protect indigenous rights and local communities Tax evasion
Need to protect biodiversity Information management
Deforestation, land degradation Customer health and safety
Resource drainage Transparency and reporting
Source: McKinsey & Company, BofA Global Research
BofA GLOBAL RESEARCH

Sovereignty issues; plan needed to source and secure raw

materials
Battery Energy Storage Systems include several raw materials. The most usual metals
are lithium, cobalt and nickel. Manganese and aluminium are used in the cathodes of
batteries. In a lesser extent, iron and graphite may be used to enhance battery
performances while acid batteries require lead and flow batteries vanadium. Copper is
used in all wiring and connectors and is an essential material for electrical components
of all BESS technologies.

Demand for these materials will rise in the coming years, with demand exponentially
increasing. Securing access to critical raw material essential to transition and for which
the EU or the US are heavily dependent on a limited number of country suppliers is, as
such, crucial.

Table 6: Need of critical minerals for clean energy technologies

Batteries need copper, cobalt, nickel, lithium and Rare Earth elements
Rare Earth Platinum
Copper Cobalt Nickel Lithium Elements Chromium Zinc Group Metals
Solar PV High Low Low Low Low Low Low Low
Wind High Low Medium Low High Medium High Low
Hydro Medium Low Low Low Low Medium Medium Low
Nuclear Medium Low Medium Low Low Medium Low Low
Electricity networks High Low Low Low Low Low Low Low
EVs and battery storage High High High High High Low Low Low
Hydrogen Low Low High Low Medium Low Low High
Source: International Energy Agency
BofA GLOBAL RESEARCH

China currently has slightly less than 30% of global lithium extraction capacity but also
has c70% of lithium refining capacity and an even higher percentage of battery making
capacity. This dominance, particularly in the downstream part of the supply chain, poses
meaningful geopolitical risks.

Sustainability Matters | 26 March 2025 11

 Exhibit 18: Lithium Supply (kt LCE)
China leading production but also refining capacity

1,200
Mined Chemical

900

600

300

Source: Benchmark Mineral

BofA GLOBAL RESEARCH

According to McKinsey MineSpans, lithium could face significant shortage in supply by

2030. Their base scenario is for slightly less than c1,500kt mined in 2030 versus
c3,300kt projected demand.
Meanwhile, the recent announcement of the Democratic Republic of Congo (DRC) to
temporarily ban the export of cobalt for at least four months, to regulate supply on the
international market, is another example of the risks and uncertainties about critical raw
material supply. The DRC accounts for more than three-quarters of the global production
of cobalt.
The EU launched the Critical Raw Material Act (CRMA) as part of the broader Green
Industrial Plan back in 2023. The Critical Raw Material Act aims to strengthen the
autonomy and sovereignty of the EU by diversifying imports, and by improving the EU’s
capacity to monitor and mitigate risks of disruptions to the supply chain. By 2030, the
EU targets the capacity to extract 10%, process 40%, and recycle 25% of its annual
consumption of strategic raw materials. The bloc should not rely on a single source of
supply for more than 65% of its consumption.
The EU reiterated late February, in the Clean Industrial Deal, the aim to prioritize the
implementation of the CRMA. One of the new recommendations is the creation of a
dedicated European centre to “jointly purchase raw materials on behalf of interested
companies”.

A list of 34 critical raw materials and 16 strategic raw materials was created in 2024.
Back to the list of required materials for BESS, copper do not meet the Critical Raw
Material thresholds but is included on the CRM list as strategic raw materials in line with
the Critical Raw Materials Act. Nickel-battery grade, lithium, cobalt, manganese, and
aluminium are in the CRMA list (see Table 13 in appendix).
In the US, the Inflationary Reduction Act (IRA) includes many Metals Important for
Future Technologies (MIFTs) critical for the energy transition. Cobalt, lithium, nickel,
aluminium, and manganese are listed as MIFTs (see Table 14 in appendix).

Recycling is the next challenge

Rules set to cover the entire life of batteries
Recycling of batteries is becoming increasingly important. Although, it tends to apply
mostly to electric vehicles, battery energy storage system will face the same challenges:

• given the current pricing environment, solutions around battery circularity, especially
lithium batteries, are likely to become essential as waiting for new supply to come

12 Sustainability Matters | 26 March 2025

 online can create bottlenecks and extracting lithium at higher operating costs is not
sustainable;

• the majority of lithium recycling capacity exists in China. There is thus a push to
create domestic capacity for many countries.

Once battery is removed from a vehicle or an energy storage facility, there are a few
approaches for recycling it (primarily pyrometallurgy and hydrometallurgy) that vary in
terms of costs, safety, and environmental impact. The most lucrative materials to extract
from a battery include nickel and cobalt (for NMC batteries, Nickel Manganese Cobalt)
and lithium (for LFP batteries, Lithium Ferro-Phosphate).

In Europe, the EU battery regulation launched in 2023 and effective from 2024 onward
sets rules covering the entire life of batteries. It targets a “high level of recovery”,
especially for the raw materials mentioned above. More specifically, and linked to BESS,
some of the EU targets include:

• 50% lithium recovery from waste batteries by the end of 2027 and 80% by the end
of 2031;

• 90% recovery of cobalt, copper, lead and nickel by the end of 2027 and 95% by the
end of 2031;

• minimum levels of recycled content for industrial batteries from 2031 with 16% for
cobalt, 85% for lead, 6% for lithium and 6% for nickel.

The Clean Industrial Deal is also focusing on black mass recycling (process that extracts
valuable materials like lithium, cobalt, and nickel from used lithium-ion batteries), with
specific measures to be adopted in the coming months.

In the US, the Environmental Protection Agency (EPA) is working on future guidance for
lithium batteries separate from the current general battery universal waste guidance. It
should be released by mid-2025. The EPA already recognised that “recycling used
lithium-ion batteries will help address emerging issues associated with the clean energy
transition, […], end-of-life lithium-ion batteries contain valuable critical minerals needed
in the production of new batteries”. Meanwhile, states agencies are also working on
specific laws though the focus is mostly on electric vehicle batteries.

Re-use vs. recycling for BESS

Using electrical vehicle battery as a second life in stationary energy storage mays also
address the challenge of recycling as well as making the economics of battery storage
more viable. Once an EV battery reaches a certain state of health percentage (SoH), it
becomes not useable any longer for cars. If an EV battery is considered as the end of its
life when it reaches 70% SoH, BESS can use batteries until they reach 50% SoH. BESS
using second-life batteries creates a cheaper alternative to brand new batteries and
increases return on investment whilst also benefiting the environment.

Whether old EV batteries should be reused or recycled is an important debate. The final
outcome will depend on the scarcity of materials, technology and economics. Reusing or
recycling of batteries mostly depend on scarcity and costs of key raw battery materials
such as lithium, cobalt and nickel. If such materials become very expensive, it may make
more sense to recycle and extract the raw materials for use in new batteries. If raw
material scarcity and costs are not as much an issue, then reuse in stationary storage
could be an easier second-life option.

Sustainability Matters | 26 March 2025 13

Leading the production of BESS
The BESS solution providers
BloombergNEF energy storage assets data base counts 2,604 BESS projects globally, as
of January 2025 for a total of 336 companies involved.

Exhibit 19: 2,604 battery storage projects globally

Asia is leading with 52% of the projects and 58% of the total adjusted capacity

1,800

1,335

1,200

718

600
402

149

0
Rest Of the World Europe N. America Asia
Source: BloombergNEF
BofA GLOBAL RESEARCH

Focusing on the companies with at least two developed BESS projects, we recorded 177
companies of which 86 are listed companies. The latter account for two third (67%) of
the projects globally and 61% of the overall adjusted capacity.

The industry is however dominated by 10 companies who collectively have 61% of the
current adjusted capacity. Within the top 10 companies, six are listed which account for
41% of the global adjusted capacity.

Exhibit 20: 336 companies globally… Exhibit 21: … but TOP 10 accounts for 61% of the overall capacity
Number of companies developing BESS projects Top 10 capacity in percentage of total adjusted capacity

450 80%
336 61.1%
60% 47.4%
300 41.0%
177 40%
150 86
20%
0 0%
Overall number of Total with 2 projects Listed with 2 projects Top 10 6 companies listed Top 10
companies (listed + non-listed) within Top 10 listed companies
Source: BofA Global Research, BloombergNEF Source: BofA Global Research, BloombergNEF
BofA GLOBAL RESEARCH BofA GLOBAL RESEARCH

We list below the listed companies with at least two projects in BESS, across Europe,
North America and Asia Pacific. We also looked at Bloomberg SDG 7 potential revenue
impact as Sustainable Development Goal 7 aims to ensure access to affordable, reliable,
sustainable, and modern energy for all. Battery storage plays a crucial role in achieving
this goal by enabling the efficient use of renewable energy sources like solar and wind.

Table 7: 14 EMEA companies developing at least two BESS projects

4.7% of the overall adjusted capacity for the listed names below
BofA Market cap SDG 7 - potential
Ticker Company Sector Country (USDmn) No of projects Capacity (MWh) revenue with an impact
ENR GY Siemens Energy AG Industrials Germany 50,441 4 2,866 78.3%
WRT1V FH Wartsila OYJ Abp Industrials Finland 11,944 4 2,848 0.0%
ABBN SW ABB Ltd Industrials Switzerland 103,644 10 1,177 0.0%

14 Sustainability Matters | 26 March 2025

Table 7: 14 EMEA companies developing at least two BESS projects
4.7% of the overall adjusted capacity for the listed names below
TTE FP TotalEnergies SE Energy France 144,185 56 830 57.3%
RR/ LN Rolls-Royce Holdings PLC Industrials Britain 86,494 13 324 0.0%
IES LN Invinity Energy Systems PLC Industrials Britain 50 15 184 100.0%
LECN SW Leclanche SA Industrials Switzerland 197 11 172 100.0%
SEDG US SolarEdge Technologies Inc Information Technology Israel 997 37 143 6.4%
ALFEN NA Alfen N.V. Industrials Netherlands 316 2 22 34.3%
BMW GY Bayerische Motoren Werke AG Consumer Discretionary Germany 55,112 6 16 0.0%
ALESE FP Entech SACA Industrials France 125 2 4 0.0%
MBG GY Mercedes-Benz Group AG Consumer Discretionary Germany 61,451 2 1 0.0%
SU FP Schneider Electric SE Industrials France 142,340 2 1 78.7%
BYW6 GR PowerHub (BayWa AG-Vink) Industrials Germany 339 3 0 36.0%
This is a screen and not a recommended list either individually or as a group of stocks. Investors should consider the fundamentals of the companies and their own individual circumstances / objectives before making
any investment decisions.
Source: BofA Global Research, Bloomberg, BloombergNEF
BofA GLOBAL RESEARCH

Table 8: US companies developing at least two BESS projects

22.1% of the overall adjusted capacity for the listed names below
Market cap SDG 7 - potential
BofA Ticker Company Sector Country (USDmn) No of projects Capacity (MWh) revenue with an impact
TSLA US Tesla Inc Consumer Discretionary United States 895,446 202 29,547 0.0%
CSIQ US Canadian Solar Inc Information Technology Canada 627 24 6,960 18.7%
FLNC US Fluence Energy Inc Industrials United States 962 11 2,236 100.0%
GE US General Electric Co Industrials United States 224,227 14 781 0.0%
RILY US B Riley Financial Inc Financials United States 124 23 710 0.0%
HON US Honeywell International Inc Industrials United States 137,441 3 106 0.0%
ENS US EnerSys Industrials United States 3,874 15 16 44.4%
ELVA US Electrovaya Inc Industrials Canada 109 3 4 98.6%
ULBI US Ultralife Corp Industrials United States 91 2 3 81.9%
EXC US Exelon Corp Utilities United States 43,996 6 2 100.0%
ENB CN Enbridge Inc Energy Canada 96,424 5 2 50.5%
This is a screen and not a recommended list either individually or as a group of stocks. Investors should consider the fundamentals of the companies and their own individual circumstances / objectives before making
any investment decisions.
Source: BofA Global Research, Bloomberg, BloombergNEF
BofA GLOBAL RESEARCH

Table 9: Asia-Pacific companies developing at least two BESS projects

34.7% of the overall adjusted capacity for the listed names below
No of SDG 7 - potential
BofA Market cap project Capacity revenue with an
Ticker Company Sector Country (USDmn) s (MWh) impact
300750 CH Contemporary Amperex Technology Co Ltd Industrials China 157,315 263 17,904 92.1%
002594 CH BYD Co Ltd Consumer Discretionary China 153,625 93 8,204 0.0%
300014 CH Eve Energy Co Ltd Industrials China 13,787 136 7,370 100.0%
South
051910 KS LG Chem Ltd Materials Korea 12,472 151 5,061 6.2%
300068 CH Zhejiang Narada Power Source Co Ltd Industrials China 2,129 70 3,325 100.0%
300438 CH Guangzhou Great Power Energy & Technology Co Ltd Industrials China 1,917 35 2,666 100.0%
South
006400 KS Samsung SDI Co Ltd Information Technology Korea 9,457 114 2,392 94.6%
002074 CH Gotion High-tech Co Ltd Industrials China 5,540 23 2,263 100.0%
5333 JT NGK Insulators Ltd Industrials Japan 3,904 40 2,048 0.0%
300274 CH Sungrow Power Supply Co Ltd Industrials China 20,552 25 1,509 27.5%
600522 CH Jiangsu Zhongtian Technology Co Ltd Industrials China 7,039 22 1,332 52.2%
819 HK Tianneng Power International Ltd Consumer Discretionary China 1,167 6 1,327 0.0%
000651 CH Gree Electric Appliances Inc of Zhuhai Consumer Discretionary China 34,828 22 1,151 100.0%
3931 HK CALB Group Co Ltd Consumer Discretionary China 4,303 20 881 0.0%
002460 CH Ganfeng Lithium Group Co Ltd Materials China 8,903 16 695 23.5%
300207 CH Sunwoda Electronic Co Ltd Industrials China 5,794 13 666 24.9%
002335 CH Kehua Data Co Ltd Industrials China 2,789 5 515 53.6%
831152 CH Kunming Hendera Science & Technology Co Ltd Materials China 322 2 402 0.0%
002184 CH Shanghai Hi-Tech Control System Co Ltd Information Technology China 654 2 350 0.0%

Sustainability Matters | 26 March 2025 15

 Table 9: Asia-Pacific companies developing at least two BESS projects
34.7% of the overall adjusted capacity for the listed names below
688411 CH Beijing HyperStrong Technology Co Ltd Industrials China 1,901 6 347 100.0%
South
005930 KS Samsung Electronics Co Ltd Information Technology Korea 241,017 2 301 0.0%
2727 HK Shanghai Electric Group Co Ltd Industrials China 15,078 2 301 0.0%
002121 CH Shenzhen Clou Electronics Co Ltd Industrials China 1,015 11 291 33.0%
7201 JT Nissan Motor Co Ltd Consumer Discretionary Japan 10,338 12 230 0.0%
600406 CH NARI Technology Co Ltd Industrials China 24,882 5 204 100.0%
6594 JT NIDEC CORP Industrials Japan 21,306 3 193 0.0%
002169 CH Guangzhou Zhiguang Electric Co Ltd Industrials China 652 3 151 78.8%
2208 HK Goldwind Science & Technology Co Ltd Industrials China 5,006 4 131 5.3%
Chengde Xinxin Vanadium Titanium Energy Storage Technology Co
000709 CH Ltd Materials China 3,316 2 108 0.0%
000400 CH Xuji Electric Co Ltd Industrials China 3,644 5 97 75.4%
002580 CH Shandong Sacred Sun Power Sources Co Ltd Industrials China 851 8 96 100.0%
5802 JP Sumitomo Electric Industries Ltd Consumer Discretionary Japan 14,680 12 94 10.8%
6674 JP GS Yuasa Corp Industrials Japan 1,696 11 89 100.0%
3996 HK China Energy Engineering Corp Ltd Industrials China 11,666 2 80 40.4%
4004 JP Resonac Holdings Corp Materials Japan 4,191 6 63 0.0%
868 HK Xinyi Glass Holdings Ltd Industrials Hong Kong 4,466 6 43 0.0%
South
064400 KS LG CNS Co Ltd Information Technology Korea 3,404 2 34 0.0%
JKS US JinkoSolar Holding Co Ltd Information Technology China 1,099 3 33 0.0%
301325 CH Shenzhen Manst Technology Co Ltd Industrials China 1,208 2 32 0.0%
688063 CH Pylon Technologies Co Ltd Industrials China 1,379 9 26 100.0%
001283 CH Shenzhen Highpower Technology Co Ltd Industrials China 647 3 21 100.0%
South
006260 KS LS Corp Industrials Korea 2,486 2 20 27.9%
6762 JT TDK Corp Information Technology Japan 21,037 5 20 2.5%
6501 JP Hitachi Ltd Industrials Japan 114,410 7 19 30.7%
601222 CH Jiangsu Linyang Energy Co Ltd Industrials China 1,900 3 18 63.0%
600525 CH ChangYuan Technology Group Ltd Industrials China 779 2 16 32.6%
CBAT US CBAK Energy Technology Inc Industrials China 77 2 13 0.0%
6141 JP DMG Mori Co Ltd Industrials Japan 2,962 12 10 0.0%
6752 JP Panasonic Holdings Corp Consumer Discretionary Japan 30,165 6 9 38.7%
002756 CH YongXing Special Materials Technology Co Ltd Materials China 2,536 2 9 0.0%
6758 JT Sony Group Corp Consumer Discretionary Japan 153,817 4 5 0.0%
301070 CH Kale Environment Technology Shanghai Co Ltd Industrials China 459 2 4 0.0%
8058 JT Mitsubishi Corp Industrials Japan 73,932 2 1 38.4%
7011 JT Mitsubishi Heavy Industries Ltd Industrials Japan 61,706 2 1 0.0%
South
009830 KS Hanwha Solutions Corp Materials Korea 2,287 2 0 0.0%
000066 CH China Greatwall Technology Group Co Ltd Information Technology China 6,271 2 0 0.0%
This is a screen and not a recommended list either individually or as a group of stocks. Investors should consider the fundamentals of the companies and their own individual circumstances / objectives before making
any investment decisions.
Source: BofA Global Research, Bloomberg, BloombergNEF
BofA GLOBAL RESEARCH

The pure-play providers of BESS

Using the Energy Storage System BICS classification, we moreover list companies
producing battery energy storage systems or producing components included in BESS.
We filter the company using a 50% revenue threshold (at least 50% of the revenue is
BESS related), a market capitalization above $100mn. We removed the companies
already mentioned in the previous lists above. We get a list of 36 companies globally of
which six are located in North America, two in Europe, and 28 in Asia Pacific.

Table 10: 36 pure play companies supplying the BESS technology (>50% of their revenues)
More than two-thirds of the technology suppliers are based in Asia Pacific
Market cap SDG 7 - potential
BofA Ticker Company Sector Country (USDmn) % Tot Rev revenue with an impact
247540 KS Ecopro BM Co Ltd Industrials South Korea 7,158 100% 100.0%
EXID IN Exide Industries Ltd Consumer Discretionary India 3,604 100% 100.0%
300068 CH Zhejiang Narada Power Source C Industrials China 2,129 100% 100.0%
300438 CH Guangzhou Great Power Energy & Industrials China 1,917 100% 100.0%
066970 KS L&F Co Ltd Industrials South Korea 1,698 100% 100.0%

16 Sustainability Matters | 26 March 2025

 Table 10: 36 pure play companies supplying the BESS technology (>50% of their revenues)
More than two-thirds of the technology suppliers are based in Asia Pacific
300568 CH Shenzhen Senior Technology Mat Materials China 1,988 100% 100.0%
688063 CH Pylon Technologies Co Ltd Industrials China 1,379 100% 100.0%
FLNC US Fluence Energy Inc Industrials United States 962 100% 100.0%
002733 CH Shenzhen Center Power Tech Co Industrials China 950 100% 100.0%
EOSE US Eos Energy Enterprises Inc Industrials United States 986 100% 100.0%
001283 CH Shenzhen Highpower Technology Industrials China 647 100% 100.0%
BLDP CN Ballard Power Systems Inc Industrials Canada 391 100% 100.0%
F3C GR SFC Energy AG Industrials Germany 433 100% 100.0%
6940 TT GUS TECHNOLOGY CO LTD Industrials Taiwan 237 100% 100.0%
SLDP US Solid Power Inc Consumer Discretionary United States 209 100% 100.0%
NRGV US Energy Vault Holdings Inc Industrials United States 144 100% 100.0%
LECN SW Leclanche SA Industrials Switzerland 197 100% 100.0%
NVX AU Novonix Ltd Information Technology Australia 214 100% 100.0%
6558 TT SYNergy ScienTech Corp Industrials Taiwan 162 100% 100.0%
FCEL US FuelCell Energy Inc Industrials United States 104 100% 100.0%
243840 KS Shin Heung Energy & Electronic Industrials South Korea 129 100% 100.0%
300648 CH Fujian Nebula Electronics Co L Industrials China 542 100% 99.9%
300769 CH Shenzhen Dynanonic Co Ltd Materials China 1,279 100% 99.7%
002759 CH Tonze New Energy Technology Co Consumer Discretionary China 565 88% 100.0%
002580 CH Shandong Sacred Sun Power Sour Industrials China 851 87% 100.0%
300490 CH HNAC Technology Co Ltd Industrials China 458 82% 100.0%
300450 CH Wuxi Lead Intelligent Equipmen Industrials China 4,653 81% 81.0%
600152 CH Veken Technology Ltd Industrials China 451 80% 96.4%
HBLENGIN IN HBL Engineering Ltd Industrials India 1,531 75% 74.8%
300080 CH Henan Yicheng New Energy Co Lt Materials China 1,037 71% 22.8%
082920 KS Vitzrocell Co Ltd Industrials South Korea 392 70% 62.8%
842 HK Leoch International Technology Industrials China 444 68% 67.8%
951 HK Chaowei Power Holdings Ltd Consumer Discretionary China 209 64% 63.6%
042370 KS Vitzro Tech Co Ltd Industrials South Korea 136 54% 53.8%
3027 TT Billion Electric Co Ltd Information Technology Taiwan 120 52% 7.2%
300077 CH Nations Technologies Inc Information Technology China 1,916 51% 50.8%
This is a screen and not a recommended list either individually or as a group of stocks. Investors should consider the fundamentals of the companies and their own individual circumstances / objectives before making
any investment decisions.
Source: BofA Global Research, Bloomberg
BofA GLOBAL RESEARCH

European companies supplying the battery industry

In the context of the EU Clean Industrial Deal will also give a focus on the European
companies supplying the battery industry. All should be eligible to subsidies under the
Clean Industrial State Aid Framework, the future Industrial Decarbonisation Bank, or the
Competitiveness Fund.

The companies we highlight below have exposure to battery technologies

(manufacturers and components). The automotive industry is well represented though
most are acting through joint ventures in manufacturing batteries. Chemical companies
are supplying electrolytes, coolant, or cathodes while industrial manufactures cables.
Lastly, tech companies supply Silicon Carbide Power Semiconductors for battery
systems.

Table 11: 29 European companies supplying the battery industry

Providers of battery or components entering in battery manufacturing
Bloomberg ticker Company Sector Country Market cap (USDmn) SDG 7 - potential revenue with an impact
AALB NA Aalberts NV Industrials Netherlands 3,938 0.0%
AIXA GR AIXTRON SE Information Technology Germany 1,429 0.0%
ALFA SS Alfa Laval AB Industrials Sweden 18,435 30.3%
AKE FP Arkema Materials France 6,201 0.0%
ASM NA ASM International NV Information Technology Netherlands 24,140 0.0%
BAS GY BASF Materials Germany 48,065 0.0%
BESI NA BE Semiconductor Industries NV Information Technology Netherlands 9,317 0.0%
ELK NO Elkem ASA Materials Norway 1,342 0.0%
FPE3 GY Fuchs Materials Germany 6,065 0.0%
G1A GY GEA Industrials Germany 10,628 0.0%
HPOLB SS Hexpol AB Materials Sweden 3,281 0.0%
HUSQB SS Husqvarna AB Industrials Sweden 2,858 0.0%

Sustainability Matters | 26 March 2025 17

 Table 11: 29 European companies supplying the battery industry
Providers of battery or components entering in battery manufacturing
DNR IM Industrie De Nora IM Industrials Italy 1,471 6.0%
LXS GY Lanxess Materials Germany 2,794 0.0%
LR FP Legrand SA Industrials France 29,176 0.0%
METSO FH Metso Outotec Oyj Industrials Finland 9,607 0.0%
ML FP Michelin Consumer Discretionary France 26,038 0.0%
NHY NO Norsk Hydro ASA Materials Norway 12,629 0.0%
RNO FP Renault Consumer Discretionary France 15,713 0.0%
SIE GY Siemens AG Industrials Germany 193,245 0.0%
SIKA SW Sika AG Materials Switzerland 40,955 0.0%
SOI FP SOITEC Information Technology France 2,144 0.0%
SOLB BB Solvay Materials Belgium 3,832 0.0%
STLAM IM Stellantis Consumer Discretionary Netherlands 35,374 0.0%
TKA GY Thyssenkrupp Materials Germany 6,254 0.0%
UMI BB Umicore Materials Belgium 2,418 0.0%
VACN SW VAT Group AG Industrials Switzerland 11,510 0.0%
VWS DC Vestas Industrials Denmark 15,390 10.7%
VOLVB SS Volvo AB Industrials Sweden 61,363 0.0%
Source: BofA Global Research, company report, Bloomberg
BofA GLOBAL RESEARCH

Companies investing in European battery storage projects

Finance and utility companies in Europe are increasingly investing in battery storage to
support the transition to renewable energy and enhance grid stability. The European
Green Deal was already supporting battery investment and the EU Clean Industrial Deal
is likely to pursue the same strategy:

• for utilities, battery storage helps optimize energy distribution, reduce grid
congestion, and improve overall efficiency. It also enables participation in additional
services, such as frequency regulation and peak shaving, which can provide
additional revenue streams;

• for financial investors, battery storage presents an attractive opportunity due to

falling technology costs, supportive government policies, and growing demand for
sustainable energy solutions.

Exhibit 22: 34 Big and SMID caps investing in BESS project in Europe
Utility companies and financing lead investment in BESS projects in Europe
Bloomberg Market
Company Sector Country
ticker capitalisation ($mn)
AB9 GY ABO Energy GmbH & Co KGaA Utilities Germany 409
AES US AES Corp/The Utilities US 9,169
AIF CN Altus Group Ltd/Canada Real Estate Canada 1,684
CSIQ US Canadian Solar Inc Information Technology Canada 627
CNA LN Centrica PLC Utilities UK 9,655
CORRE ID Corre Energy BV Energy Netherlands 7
EOAN GY E.ON SE Utilities Germany 37,942
EBK GR EnBW Energie Baden-Wuerttember Utilities Germany 20,301
ENEL IM Enel SpA Utilities Italy 80,109
ENGI FP Engie SA Utilities France 46,578
ENLT US Enlight Renewable Energy Ltd Utilities Israel 1,888
GWH US ESS Tech Inc Industrials US 40
XGN US Exagen Inc Health Care US 72
FSG LN Foresight Group Holdings Ltd Financials UK 545
GSF LN Gore Street Energy Storage Fun n/a UK 382
GRE SM Grenergy Renovables SA Utilities Spain 1,176
GRID LN Gresham House Energy Storage F n/a Britain 448
IBE SM Iberdrola SA Utilities Spain 100,849
KKR US KKR & Co Inc Financials US 108,340
KONTR TI Kontrolmatik Enerji Ve Muhendi Industrials Türkiye 461
MQG AU Macquarie Group Ltd Financials Australia 49,328

18 Sustainability Matters | 26 March 2025

Exhibit 22: 34 Big and SMID caps investing in BESS project in Europe
Utility companies and financing lead investment in BESS projects in Europe
Bloomberg Market
Company Sector Country
ticker capitalisation ($mn)
NITO US N2OFF Inc Materials Israel 4
NTGY SM Naturgy Energy Group SA Utilities Spain 26,702
ORSTED DC Orsted AS Utilities Denmark 19,410
NOFR IT OY Nofar Energy Ltd Utilities Israel 798
TRIG LN Renewables Infrastructure Grou Utilities UK 2,308
RWE GY RWE AG Utilities Germany 26,483
SLB US Schlumberger NV Energy US 56,706
SCI SP Sembcorp Industries Ltd Utilities Singapore 8,430
ENR GY Siemens Energy AG Industrials Germany 50,441
SSE LN SSE PLC Utilities Britain 22,180
TRN IM Terna - Rete Elettrica Naziona Utilities Italy 17,711
TTE FP TotalEnergies SE Energy France 144,185
UN0 GY Uniper SE Utilities Germany 19,747
Source: BofA Global Research, Bloomberg
BofA GLOBAL RESEARCH

Sustainability Matters | 26 March 2025 19

Appendix
Different technologies for batteries; sodium-ion batteries are promising
There are currently several technologies supporting energy storage. From lightweight
and fast charging with lithium-ion to long lasting and cheaper solution like gravity, the
different technologies can be used in electric infrastructure to supply the grid.

Table 12: Different technologies used in Battery Energy Storage Systems

From Lithium-Ion to Gravity
Technology Battery operation Advantage Uses / Opportunities
Used in phones and electric cars. Opportunity for grid
Move tiny charged particles (lithium ions) between two
Lithium-Ion Lightweight, charge quickly, and last a long time stabilization, renewable energy storage (like solar and
materials to store and release energy
wind), and backup power
Cheap and reliable but heavy and does not last as long
Lead-Acid Uses lead plates and an acid solution to store energy Short-term backup power
as lithium-ion
Uses two liquid chemicals that flow past each other to Last a long time and can be easily recharged by
Flow Large-scale energy storage for wind and solar farms
store and release energy replacing the liquid but low energy density
Works like lithium-ion but uses sodium (found in salt) Cheaper and more sustainable than lithium-ion, global Future large-scale storage where cost is a bigger
Sodium-Ion
instead of lithium supply abundance, but not as energy-dense concern than size
Uses a solid material instead of liquid to move charges Safer, lasts longer, and holds more energy in a smaller
Solid-State Future electric vehicles and grid storage
around space
Uses nickel and other metals to store and release More durable and better for extreme temperatures
Nickel-Based Industrial applications and remote power systems
energy than lithium-ion
Uses gravity to store energy like pumping water up a
Gravity hill when electricity is available and letting it flow back Super long-lasting and efficient Storing large amounts of energy over long periods
down through a turbine when energy is needed
Thermal Energy Stores electricity as heat using molten salt and later
Good for storing solar energy for nighttime use Concentrated solar plants
Storage converts it back to electricity
Source: BofA Global Research
BofA GLOBAL RESEARCH

According to BofA US chemical analyst, sodium-ion batteries should develop

significantly in the next 5+ years. Sodium-Ion batteries are seen as a potential substitute
for lithium-ion batteries due to global supply abundance and potentially higher safety
compared to lithium-ion batteries. There are nonetheless still some barriers keeping it
from cannibalizing lithium-ion battery use cases including costs, lower space efficiency,
and inferior cycle life and durability (see report: Lithium battery conference takeaways:
Government Policy, Market Expectations 19 November 2024). Overtime, economy of
scale may help reducing cost for sodium-ion while energy storage is not as dependent
on space efficiency as the mobility market. Sodium-ion batteries have been used in
energy storage applications and are likely to grow in the near-term.

Critical Raw Material Act in the EU and Metals Important for Future
Technologies in the US
A list of 34 critical raw materials and 16 strategic raw materials was created in 2024 in
Europe.
Table 13: EU Critical and Strategic raw materials
34 critical raw materials and 16 strategic raw materials
Critical Raw Materials (2023)
Antimony Copper Lithium Scandium
Arsenic Feldspar Magnesium Silicon metal
Aluminium/Bauxite Fluorspar Manganese Strontium
Baryte Gallium Natural Graphite Tantalum
Beryllium Germanium Nickel – battery grade Titanium metal
Bismuth Hafnium Niobium Tungsten
Boron/borates Helium Phosphate rock Vanadium
Cobalt Heavy Rare Earth Elements Phosphorus
Coking Coal Light Rare Earth Elements Platinum Group Metals
Strategic Raw Materials (2023)
Bismuth Gallium Manganese - battery grade Rare Earth Elements for magnets (Nd, Pr, Tb, Dy, Gd, Sm, and Ce)
Boron - metallurgy grade Germanium Natural Graphite - battery grade Silicon metal
Cobalt Lithium - battery grade Nickel - battery grade Titanium metal
Copper Magnesium metal Platinum Group Metals Tungsten

20 Sustainability Matters | 26 March 2025

 Table 13: EU Critical and Strategic raw materials
34 critical raw materials and 16 strategic raw materials
Critical Raw Materials (2023)
Source: BofA Global Research, EU Commission
BofA GLOBAL RESEARCH

In the US, the Inflationary Reduction Act (IRA) includes many Metals Important for
Future Technologies (MIFTs) critical for the energy transition.

Table 14: The IRA includes many MIFTs (metals important for future technologies) critical for batteries
US 2022 list of critical minerals
Mineral usage Mineral usage
Aluminum Almost all sectors of the economy Magnesium Alloy and for reducing metals
Antimony Lead-acid batteries and flame retardants Manganese Steelmaking and batteries
Arsenic Semi-conductors Neodymium Permanent magnets, rubber catalysts, and in medical and industrial lasers
Barite Hydrocarbon production Nickel Stainless steel, superalloys, and rechargeable batteries
Beryllium Alloying agent in aerospace and defense industries Niobium Steel and superalloys
Bismuth Medical and atomic research Palladium Catalytic converters and as a catalyst agent
Cerium Catalytic converters, ceramics, glass, metallurgy, and polishing compounds Platinum Catalytic converters
Cesium Research and development Praseodymium Permanent magnets, batteries, aerospace alloys, ceramics, and
colorants
Chromium Stainless steel and other alloys Rhodium Catalytic converters, electrical components, and as a catalyst
Cobalt Rechargeable batteries and superalloys Rubidium Research and development in electronics
Dysprosium Permanent magnets, data storage devices, and lasers Ruthenium Catalysts, electrical contacts and chip resistors in computers
Erbium Fiber optics, optical amplifiers, lasers, and glass colorants Samarium Permanent magnets, absorber in nuclear reactors, and in cancer
treatments
Europium Phosphors and nuclear control rods Scandium Alloys, ceramics, and fuel cells
Fluorspar Manufacture of aluminium, cement, steel, gasoline, and fluorine chemicals Tantalum Electronic components, mostly capacitors and in superalloys
GadoliniumMedical imaging, permanent magnets, and steelmaking Tellurium Solar cells, thermoelectric devices, and as alloying additive
Gallium Integrated circuits and optical devices like LEDs Terbium Permanent magnets, fiber optics, lasers, and solid-state devices
Germanium Fiber optics and night vision applications Thulium Metal alloys and in lasers
Graphite Lubricants, batteries, and fuel cells Tin Protective coatings and alloys for steel
Hafnium Nuclear control rods, alloys, and high-temperature ceramics Titanium White pigment or metal alloys
Holmium Permanent magnets, nuclear control rods, and lasers Tungsten Wear-resistant metals
Indium Liquid crystal display screens Vanadium Vanadium, primarily used as alloying agent for iron and steel
Iridium Coating of anodes for electrochemical processes and as a chemical Ytterbium Catalysts, scintillometers, lasers, and metallurgy
catalyst
Lanthanum Catalysts, ceramics, glass, polishing compounds, metallurgy, and Yttrium Ceramic, catalysts, lasers, metallurgy, and phosphors
batteries
Lithium Rechargeable batteries Zinc Galvanized steel
Lutetium Scintillators for medical imaging, electronics, and some cancer therapies Zirconium High-temperature ceramics and corrosion-resistant alloys.
Note: The bolded items are the materials that fit into batteries actually.
Source: BofA Global Research, USGS
BofA GLOBAL RESEARCH

Sustainability Matters | 26 March 2025 21

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