Lithium Batteries Remain Central to the Energy Transition as New Technologies Emerge

HONG KONG, March 23, 2026 – As countries accelerate their transition toward low-carbon energy systems, battery technologies are becoming increasingly critical to both electric mobility and renewable energy storage.

While alternative technologies such as hydrogen energy are gaining attention, lithium-ion batteries continue to dominate the global energy storage landscape due to their technical maturity and economic viability.

Speaking to CarbonWire during The Battery Show Asia in Hong Kong, Justin Zhu, Overseas Sales Director at YUNSA Power (Ningbo) Co Ltd, said lithium-ion batteries are likely to remain the leading energy storage solution for at least the next decade.

“From both a technical and economic perspective, lithium-ion batteries are still the best solution for energy storage systems today,” Zhu said.

Battery Demand Driven by Decarbonisation

Global demand for lithium batteries is rising rapidly as governments and industries pursue decarbonisation strategies. Electric vehicles, renewable energy integration and distributed energy systems are all contributing to growing demand for advanced battery technologies.

“More people are paying attention to green energy and environmental protection,” Zhu said, pointing to the growing global momentum behind electrification and clean energy solutions.

High-Performance Batteries for Emerging Applications

YUNSA Power, founded in 2021, focuses on large cylindrical lithium battery cells designed for specialised applications requiring high-rate charging / discharging and strong performance under demanding operating conditions.

Large cylindrical formats such as the 4680 battery cells are attracting increasing interest across the industry because they offer a balance between energy capacity and high power output. “Balancing high capacity and high-rate performance has always been a challenge,” Zhu explained.

According to him, cylindrical cell structures can offer advantages over pouch and prismatic cells in certain high-performance scenarios. These battery designs allow manufacturers to incorporate advanced materials, including high-nickel cathodes and silicon-based anodes, which can improve energy density and charging performance.

Battery manufacturers today are increasingly serving both the mobility and energy storage markets.

YUNSA Power already supplies battery solutions for passenger electric vehicles while also supporting utilities and electricity companies developing grid-scale energy storage systems. These two sectors are expected to drive much of the global battery demand in the coming decades.

Recycling and Circular Battery Systems

As the number of batteries deployed worldwide continues to grow, recycling and lifecycle management are becoming central issues in the battery industry.

According to Zhu, China has already developed a significant battery recycling ecosystem, driven largely by the rapid adoption of electric vehicles. “China already has a strong recycling industry because of the large number of electric vehicles on the road,” he said.

Recovered materials can be reintroduced into battery manufacturing, creating a circular supply chain that reduces the environmental footprint of battery production.

Technology Evolution Continues

While lithium-ion batteries remain dominant, innovation within the sector continues to accelerate. Developments such as solid-state batteries and hybrid electrolyte systems are expected to play a growing role in the future.

However, Zhu believes lithium-ion technology will remain the backbone of global energy storage systems for the foreseeable future. “In the next 10 to 20 years, lithium-ion batteries will still be the leading technology,” he said.

As global demand for batteries continues to expand, the next phase of innovation will likely focus on improving performance, reducing costs and developing more sustainable lifecycle management systems.