Plummeting Battery Costs Threaten Natural Gas and Accelerate the Global Green Energy Transition

Rocky Mountain Institute’s (RMI) new report “Breakthrough Batteries: Powering an Era of Clean Electrification” shows that the global green energy transition is happening faster than predicted due to massive investments in new battery technologies and applications. With $150 billion in existing and planned investments in battery manufacturing through 2023, the cost of battery manufacturing capacity is expected drop more than half in 5 years. Already, this is contributing to cancellation of planned natural-gas power generation. RMI predicts that existing natural gas plants and internal combustion engine manufacturing plants, as part of the fossil fuel value chain, could become stranded assets as early as 2021.

RMI examines what this means for industry players and identifies six emerging battery technologies with significant market potential for commercialization. The report identifies ramifications for investors, regulators, policymakers, and other in the industry as well as strategies that can reduce potential stranded asset risks. RMIforbes