Stationary energy storage installations using lead-acid batteries grew 8-10% YoY in Q1 2026, emerging as a meaningful new demand vector. While lithium-ion dominates headline grid storage, lead-acid maintains significant share in shorter-duration, cost-sensitive applications including telecom backup, UPS, and off-grid solar.
The storage demand complements traditional automotive battery consumption. Global EV sales rose 22% in 2025, but 12-volt auxiliary batteries in EVs still use lead-acid, providing a demand floor. FMI estimates battery manufacturing accounts for 58% of global lead market value in 2025, projected to reach $47.1B by 2036.
ILZSG's 109kt surplus outlook means storage demand's price impact will be gradual. However, the trend supports why prices have held above $2,000 despite oversupply. The key variable is how fast lithium-ion substitutes lead-acid in stationary applications - currently slower than anticipated due to lead's cost advantage.