Patents from the energy sector now outnumber those from chemistry, pharmaceuticals, or transport, according to a new report by the International Energy Agency.
The energy industry is increasingly emerging as a powerhouse of innovation, and as a multi-trillion-dollar market. Around ten percent of all global patents now originate from the sector, surpassing those from chemistry, pharmaceuticals, and transport. This is the key finding of the new report, “The State of Energy Innovation 2026,” by the International Energy Agency, which analyzes the global energy innovation landscape.
According to the report, significant technological breakthroughs were achieved last year, including advances in perovskite solar cells, sodium-ion batteries, next-generation geothermal systems, and fusion energy. The IEA identifies energy security as the primary driver behind these innovations—ranking it ahead of cost efficiency or emissions reduction. This underscores the growing emphasis on strengthening domestic technological capabilities and securing critical supply chains.
In 2023, batteries accounted for 40 percent of all energy-related patents, and the share is expected to have increased further in 2024 and 2025, according to the IEA. China leads in lithium-ion battery patents, followed by South Korea and Japan. In solar cell material innovation, more than 70 percent of patents now focus on perovskite technologies, with the same three countries dominating this field.
Public Funding Can Lay the Foundation for New Technologies
The report also highlights the crucial role of public funding. In previous decades, government support helped establish the technological foundations for today’s established solutions, such as floating LNG and lithium-ion batteries. According to the IEA, the economic returns of public investments in research and development typically far exceed their costs—through fuel savings, lower equipment prices, and broader economic spillovers.
Meanwhile, gaps between public, institutional, and corporate financing can be bridged by venture capital. Private risk capital is increasingly flowing into start-ups developing high-growth, innovative technologies. The IEA observes a shift in investment priorities: whereas electromobility dominated until 2021, the focus has now shifted toward carbon capture, nuclear and fusion energy, and critical minerals, essential raw materials underpinning many of the technologies mentioned above.
More on the Topic: The importance of raw material supply chains for global energy security has already been addressed in earlier IEA reports. We also reported on the mining start-up KoBold Metals as an example of venture capital financing in the field of critical raw materials. The company’s AI-supported exploration methods attracted half a billion US dollars from investors, including Bill Gates, Jeff Bezos, and other prominent backers.
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