While lithium prices had already doubled between July and December, what initially seemed like a peak has proven otherwise. Prices continued to climb throughout the first two months of 2026, resulting in a total increase of approximately 350%.

This sharp rise has significantly impacted battery cell costs, which have now increased by a factor of 3.5. As a consequence, overall prices for BESS (Battery Energy Storage System) solutions have risen by around 30%.

Although some excess inventory is still available on the market, the average price for newly produced storage systems has climbed to approximately €240 per kWh. Given the current volatility in lithium prices, providing long-term, fixed quotations has become increasingly difficult. To manage this uncertainty, most BESS systems are now being produced on a build-to-order basis.

At the same time, revenues from flexibility trading have remained relatively low over the past three months. As a result, the market is undergoing a strategic shift. Rather than focusing primarily on flexibility revenues, new solution concepts are increasingly centred on congestion management, maximising self-consumption, grid flexibility compensation, and ensuring resilience against grid outages.

Meanwhile, innovation continues. New developments in 5 MWh, 20-foot containerised BESS solutions have emerged. By increasing the DC voltage level, it is now possible to store up to 7 MWh of electricity within a single container. This advancement reduces both infrastructure costs and space requirements, partially offsetting the impact of rising lithium prices for systems of this scale.

BeLoaded consultants will continue to closely monitor market developments to provide clients with informed guidance and optimised energy solutions.