The market for big batteries that store electricity across the power grid or at buildings, as well as power electric vehicles, has long been just around the corner. But hurdles still remain, despite bullish predictions from analysts in recent years. What obstacles are still out there that are holding this market back?

Billions of public and private funds have flowed into battery companies in recent years, thanks to the 2009 stimulus package, as well as interest from venture capitalists. But many battery startup developers have either delayed their manufacturing plans (LG Chem), shifted their marketing focus (Leyden Energy), filed for bankruptcy or gotten scooped up by larger and better-funded companies (A123 Systems and Ener1).

The Electric Power Research Institute, which serves the North American utility industry, pegged 2011-2012 as a turning point for when public-funded energy storage technologies should largely move out of the…