January 31, 2026: A record 27GWh of new battery storage capacity was installed across the European Union in 2025 according to latest analysis — but the region’s own battery cell manufacturing capacity still faces significant structural gaps.
SolarPower Europe (SPE) said in its EU Battery Storage Market Review 2025, released on January 28, that utility-scale storage was the main driver (55%) of BESS projects.
The performance marked 45% year-on-year growth and confirmed that Europe had already expanded its battery fleet 10-fold since 2021, rising from 7.8GWh to 77.3GWh today, the trade body said.
However, while EU battery manufacturing reached 252GWh of nominal cell production capacity, persistent gaps remained in cathode and anode material supply, SPE said.
Home storage system growth fell by 6% to 9.8GWh, reflecting continued slowdown driven by lower electricity prices and reduced incentive schemes.
Commercial and industrial battery systems grew modestly but remained a smaller segment of the market.
Despite the growth in BESS installations, the EU must repeat the increase 10-fold to meet its energy flexibility needs by 2030, reaching around 750GWh by the end of the decade.
SPE said while the EU shows strong capabilities in electrolyte and separator production, cathode and anode active material manufacturing remains limited, and over 90% of existing cell capacity is geared toward electric vehicles rather than stationary storage.
The EU must create the right conditions to foster battery deployment, by improving permitting, fixing tariff barriers, strengthening supply chains, and ensuring safe, sustainable storage integration across the energy system, SPE said.
Walburga Hemetsberger, CEO of the trade body, said the strong uptake of utility-scale batteries showed investors are ready, the technology is mature, and the system benefits are clear.
“But we must now dramatically accelerate deployment. To support EU security and competitiveness, we need a battery fleet capable of supporting a fully flexible, renewable based energy system.”
SPE’s call is the latest urging EU leaders to take urgent action in support of European battery manufacturers.
Last September, industry chiefs said the battery sector faced costs that are some 20% higher than their Asian competitors.
The warning came during what was termed a high-level ministerial meeting of the European Battery Alliance and the European Solar Industry Alliance in Brussels, including representatives of EU member states, the European Commission and the European Investment Bank.
