Recent Advances and Engineering Challenges of Lithium Batteries for Grid-Level Energy Storage: A Review

The global shift toward decarbonization demands reliable and scalable energy storage solutions for the sustainable integration of renewable energy sources into power grids. Lithium-based batteries (LIBs) have emerged as potential candidates for energy storage due to their high energy density, rapid response, and potential for continuous cost reduction. This review covers recent material advances, engineering challenges, and system-level innovations related to the deployment of LIBs at grid scale. Real-world applications, techno-economic indicators, sustainability concerns, recycling, as well as second-life of LIBs are also examined. Beyond the current widespread adoption of LIBs, emerging chemistries such as Li–Air batteries, hybrid energy storage systems, and regulatory frameworks are discussed. The analysis highlights that lithium-based battery energy storage systems (lithium-BESS) will play a pivotal role in large-scale applications in the following years. Nevertheless, their long-term adoption will depend not only on technological progress and cost reduction but also on sustainability, safety, and particularly the establishment of robust policy support.