The price of Lithium-ion batteries is not falling as quickly as expected this year due to supply shortages, according to Wood Mackenzie Power & Renewables, but the market researcher still expects eye-popping growth in the US energy storage market over the next two years.

Having originally predicted that average Li-ion battery prices would fall 14% this year to $207/kWh in the US market, Wood Mackenzie Power & Renewables (formerly GTM Research) has upwardly revised its forecast, now expecting a more modest 5% price decline – to $225/kWh for the year.