Industry Spotlight – Energy Technologies – The 2026 International Energy Association (IEA) Report
The International Energy Association (IEA) released its 2026 Report on the State of Energy Innovation in February. A copy can be obtained here: https://www.iea.org/reports/the-state-of-energy-innovation-2026. It contains extensive data on the global patenting of energy technologies and has some surprising findings for companies in this space.
The first finding that was of note to us was that energy innovation is tilting away from climate change and toward energy security. Concerns over grid disruptions or handling other security problems appear to be driving innovation more than concerns over climate change. Also, the percentage of all energy technology patent filings related to energy storage (e.g., batteries) has grown from 15 percent to over 40 percent in the period from 2015 to 2023, and the percentage is expected to continue to grow. IEA Report at 10, 88.
More importantly perhaps, the IEA identifies China, not the United States, as the dominant player in energy technology patenting. Energy technology patents originating from China have risen more than five times since 2015. In 2023 China represented nearly 40 percent of all energy patenting. IEA Report at 87.
What does this mean for innovators in the area of energy storage? It means that Chinese patents and applications should be searched and considered during prior art searches. We have already noted the increased significance of Chinese prior art in our searches, and the IEA Report suggests that China’s significance is particularly pronounced in the area of energy technology. Also, the IEA patent numbers were based on international patent filings, meaning patent protection was sought in at least two countries and that we can expect Chinese companies to enforce their IP outside of China.
Given the dense patenting activities in this area, it is advisable to conduct freedom to operate searches in countries where sales or manufacturing activities are planned to minimize infringement risk. Where close patents are found, a formal opinion of counsel may be advisable in order to rely on an advice of counsel defense to a charge of willful infringement. In some instances a more aggressive approach, such as the filing of a request for an ex parte reexamination or an inter partes review (IPR) may be advisable to seek invalidation of a patent of concern. However, there are pros and cons to any approach and thoughtful consideration should be given to the risks, costs, and benefits of the various options.