Life cycle assessment of lithium-ion batteries in utility-scale applications: Impacts on power supply sustainability and grid decarbonization

Abstract

Lithium-ion batteries (LIBs) are pivotal in transforming power systems toward sustainability and decarbonization, yet their environmental footprint demands rigorous scrutiny to ensure net benefits in utility-scale applications. This review employs life cycle assessment (LCA) to evaluate the environmental impacts of LIBs, from raw material extraction to end-of-life management, revealing a complex interplay of challenges and opportunities. While LIBs enable renewable energy integration, enhance grid reliability, and reduce carbon intensity by storing clean energy and displacing fossil fuels, their production incurs significant greenhouse gas emissions, resource depletion, and ecosystem disruption, particularly due to lithium and cobalt extraction. Advances in low-impact chemistries, such as lithium iron phosphate, and scalable recycling strategies mitigate these burdens, while policy incentives like carbon pricing and technological innovations, including solid-state batteries and AI-driven LCA optimization, promise enhanced sustainability. Case studies, such as the Hornsdale Power Reserve, underscore LIBs’ transformative potential in stabilizing renewable-heavy grids, yet regional grid mixes and battery degradation highlight context-specific trade-offs. Looking ahead, a circular economy and next-generation technologies could redefine LIBs’ role in achieving net-zero grids by 2050. This review offers a nuanced synthesis for policymakers, industry leaders, and researchers, advocating for strategic deployment and innovation to harness LIBs’ full potential in forging a sustainable, low-carbon energy future.