Lithium still dominates battery storage – but for how long?

Battery storage, whether paired with home solar or installed on its own, still runs almost entirely on lithium, and prices keep dropping. Battery pack costs fell to about $108 per kilowatt-hour in 2025, down 93% from 2010, with large stationary packs made from lithium iron phosphate (LFP) approaching $70/kWh. LFP is the version of lithium chemistry favored for home and grid storage because it holds up better to heat, lasts longer, and costs less than the nickel-based lithium batteries used in electric cars. These cost drops are one reason storage batteries have become more affordable for homes and businesses, with some commercial projects now paying for themselves in three to five years.

A newer technology, sodium-ion batteries, is starting to reach the market. Sodium-ion stores less energy for its size than lithium and isn't yet made at large scale, but it may perform better in cold weather and could ease reliance on lithium supply chains, much of which run through China. For now, sodium-ion looks more like a complement to lithium than a replacement, useful for applications where compact size matters less.

For homeowners, the practical takeaway is that LFP lithium batteries remain the standard choice for home storage systems for the foreseeable future, and their falling prices are part of why storage has become more affordable to pair with rooftop solar or backup power setups. No shift away from lithium is expected soon, though the market may eventually offer more chemistry options depending on the specific need.