A global surge in renewable energy and data centre demand is powering a boom in using batteries for storage on electricity grids, creating a new front in the battle between Chinese and South Korean companies that have dominated cell production for electric vehicles.

Fuelled by surging demand within China itself, Chinese batteries account for nearly 90 per cent of global capacity for energy storage systems (ESS), including a market share of more than 80 per cent in the US and more than 75 per cent in Europe.

But having suffered an 11 per cent US tariff last year, the total now imposed by President Donald Trump and his predecessor Joe Biden mean that Chinese battery companies now face an effective rate of 155.9 per cent, which is due to rise to 173.4 per cent next year — offering hope to Korean battery companies attempting to stage a comeback in the US and Europe.