Battery energy storage system failure rates decline 98% since 2018

Global lithium-ion battery energy storage systems (BESS) have seen a significant decline in failure rates. According to research from the Electric Power Research Institute (EPRI), annual failures per deployed GWh declined 98% between 2018 and 2025. The current failure rate is estimated at 0.04 failures per GWh, a level EPRI describes as comparable to large oil-filled transformers.

This decline is attributed to improvements in BESS design, operating practices, and updated codes and standards. The industry has also seen a major shift in chemistry, with lithium iron phosphate (LFP) now accounting for approximately 90% of deployments, moving away from nickel manganese cobalt (NMC) chemistries. While the shift is notable, EPRI stated there is no definitive evidence to determine if battery chemistry alone is the primary driver of the reduced failure rate.

As the market scales, logistics and safety remain critical concerns. The International Energy Agency (IEA) reported that 108 GW of battery storage was added globally in 2025, a 40% increase over 2024. Because utility-scale systems involve heavy, complex components like power-conversion systems and transformers, the logistics chain for BESS is increasingly complex, requiring strict adherence to dangerous goods classifications and specialized transport protocols.