The Mexican energy storage market is entering a new phase of expansion. The government's call for bids to develop 935 MW of standalone BESS projects, coupled with the requirement to incorporate at least 30% storage capacity in new projects awarded under the mixed scheme with the Federal Electricity Commission (CFE), solidifies the role that batteries will play in the country's energy transition.
"What we are experiencing with this auction of standalone projects is already the clearest sign we can really have that storage systems are beginning to consolidate within the energy market in Mexico. Not only as part of renewable systems, but also as generators of services and grid stability, which is something we have been requesting and needing for many years," said Israel Sánchez, Solution Manager at Gotion , during the Future Energy Summit (FES) Mexico .
However, the sector's growth coincides with a scenario of increasing uncertainty about the price of lithium, one of the main components of this technology.
In recent months, the lithium carbonate price curve has seen increases of nearly 20% in just three consecutive trading days , a dynamic that makes it difficult to sustain trading over extended periods. At the same time, the spot price of lithium carbonate has once again risen above 178,000 yuan per ton—equivalent to between USD 20,000 and USD 25,000 —driven by accelerating demand and increased supply pressures.
"Rather than giving an exact price for future years or telling you if the price will go up or down due to lithium issues, it's about being able to generate some form of protection within the contracts for both parties, both for us as sellers and for the buyers, to be able to work with those price fluctuations," he explained.
According to the executive, that capacity will largely depend on the type of manufacturer with whom the projects are developed. "Gotion is a vertically integrated manufacturer. We control everything from mining to recycling. That allows us to mitigate price variations somewhat, or at least give you greater certainty as a developer," he stated.
The growth of the Mexican market is supported by an increasingly favorable regulatory framework for energy storage. During last year's call for private bids , nearly 3 GW of renewable generation capacity was awarded, along with 1.2 GW of battery storage and energy efficiency systems (BSES) . Meanwhile, the first joint call with the Federal Electricity Commission (CFE) incorporated the requirement that projects integrate a minimum of 30% storage capacity , reinforcing the role that batteries will play in providing operational flexibility, facilitating the integration of renewables, and strengthening the reliability of the electrical system.
Furthermore, the country continues to develop a specific regulatory framework for this technology through new requirements related to technical studies, risk analysis and the presentation of Social Impact Statements (SIS), seeking to accompany the growth of the market with higher standards of safety and planning.
According to Sánchez, large projects associated with public tenders will account for the largest share of installed capacity in the coming years. However, he notes that the C&I segment already has a development base that will allow it to sustain growth even without new bidding processes.
In that regard, he explains that projects under 20 MW will be favored by the new regulatory frameworks. "It's a market that we believe can be a bit more stable over time compared to the utility sector," he added.
Continue reading
Beyond the opportunities opened up by the new regulatory framework, Sánchez believes that the biggest risk for developers will be repeating practices that already provided lessons during the expansion of solar photovoltaic energy.
"The classic mistake is to focus solely on Capex, trying to save pennies that can create problems in the future regarding operation and maintenance," he warned.
As he explains, an analysis focused solely on the initial investment can end up increasing costs during the operation of the project, especially in a technology where the reliability and performance of the batteries will be crucial throughout their lifespan.
According to the executive, another aspect that will become more important as the market grows will be the selection of technology partners.
"Not considering who you are associating with is another major mistake," he noted.
Sánchez explains that this responsibility extends to developers and integrators as well as the manufacturers themselves, since the success of the projects will depend on a relationship of trust between both parties.
Beyond its projected growth in Mexico, Gotion seeks to consolidate a broader presence in Latin America , where various countries are moving forward with tenders and new regulatory frameworks to incorporate storage. The Dominican Republic, Panama, Guatemala, Brazil, Argentina, Chile, and Mexico itself are among the markets the company identifies as priorities for its expansion.
In this context, the company aims to participate in both public tenders and projects developed by the private sector, relying on its vertical integration and a strategy to strengthen its after-sales service in the region.
The company also plans to expand its support infrastructure by opening 36 service centers in Latin America , with the aim of supporting a market that will increasingly demand greater technical specialization and equipment availability.
“It has to be a two-way relationship, giving us as manufacturers the assurance that the integrator or EPC contractor is doing things right. And it has to be the same in reverse so that the EPC contractor or integrator has the confidence that the equipment we are providing is good enough,” the executive stated.
With the Mexican market driven by new regulatory requirements and rapidly expanding demand for energy storage, Gotion aims to position itself as one of the key players seeking to capitalize on the growth of battery energy storage systems (BESS) in Latin America. For the company, the challenge will no longer be solely supplying batteries, but rather offering technological and commercial certainty in a context where lithium price volatility and supply chain reliability will be increasingly critical factors.