Qatar positions itself for rapid growth in global battery market

Doha, Qatar: Following successful pilot projects and increasing international interest in the growth potential of its domestic alternative energy mark...

Doha, Qatar: Following successful pilot projects and increasing international interest in the growth potential of its domestic alternative energy market, Qatar is forecasted to be one of the leaders in the adoption of batteries in the MENA region. 

Increasing battery storage capabilities is a strategic goal that goes hand-in-hand with Qatar’s energy transition and industrial development plans. Doha’s National Vision 2030 and its National Renewable Energy Strategy (QNRES) aims to generate 20% of the country’s energy from renewable sources by 2030. Combined with the demand of the electric vehicle (EV) industry and following early investments in domestic manufacturing – primarily driven by the lead acid battery sector – the battery materials market is expected to grow at an annual rate of 8.8% in Qatar over the next five years. The projected growth of the grid-scale battery market, which relies on stationary energy storage systems, is even more impressive. Some market researchers estimate a compounded annual growth rate of more than 180% if the expansion of renewable energy plants runs according to plan. 

Battery energy storage systems (BESS) are used to stabilize energy grids and improve energy security in both residential and industrial contexts, managing unequal grid intensity by rapidly storing excess energy during periods of low demand and releasing it during peak hours. Batteries integrate well with Qatar’s existing energy infrastructure, complementing gas-based energy production – allowing for their more efficient operation at constant levels – while solving the solar-demand mismatch, storing solar energy during the day and releasing it during the evening hours. Since its installation in 2020 following investment from the government, the Qatar Electricity and Water Corporation (KAHRAMAA) has successfully operated the first pilot energy storage project of its like in the country, opening up several opportunities for growth. Solar projects including Al Kharsaah, Mesaieed, Ras Laffan and Dukhan aim to expand solar energy production from the current 1700 MW to 5 GW by 2035, according to government plans. The stationary battery market will be the essential supporter and accompanying beneficiary of this expansion. 

Some analysts compare the current battery investment cycle to the recent AI boom in technology. As warning signs of a potential burst of the AI bubble have emerged, challenges related to inflated growth figures in the battery market are also showing. Building a resilient battery industry and remaining competitive present several trade-offs. Among them, an important development bottleneck is reaching economy of scale, which multiple smaller firms struggle to achieve. Swedish battery maker, Northvolt, was founded in 2017 with the explicit goal of becoming a ‘green’ alternative to Asian battery giants. It raised over $13 billion to build giga factories both at home and abroad, but its high unit costs and operational overreach resulted in a bankruptcy filing in 2025.  

Chinese battery maker Hithium Energy Storage was considered one of the rising Asian competitors of current market leaders. The firms plans to list on the Hong Kong Stock Exchange, were however, significantly delayed when their A1 application was rejected by HKEX regulators. Hithium’s attempts at expansion have met significant challenges, experiencing several financial and operational pressures, including a 73% debt-to-asset ratio and significant increase in government subsides propping up the company. CEO, Wu Zuyu, has also been on the receiving end of a lawsuit filed by CATL for violating intellectual property rights and poaching its competitors’ employees, something which contributed to the lapsing of the A1 application. With similar cases on the horizon, industry experts continue to caution about potential risks when partnering with foreign firms.