The development, proposed by Energy Optimisation Solutions (EOS), will support more than 100 jobs.
The Battery Energy Storage System (BESS) will be constructed on a three-acre plot at the Long Acres section of the 2,500-acre Teesworks site, on the south bank of the River Tees.
The £62 million facility will allow up to 100 Megawatts (MW) of additional green energy to be added to the grid.
Over the course of a year, the EOS facility will help reduce carbon emissions by 4,000 metric tons, equivalent to driving a car 11.6 million kilometres or 289 times around the world.
Battery storage technology is said to be crucial for accelerating the replacement of fossil fuels with renewable energy.
Battery energy storage systems allow energy from renewables, such as solar and wind, to be stored and then released when the power is needed most.
This ensures that homes and businesses can be powered by green energy, even when the sun isn’t shining or the wind has stopped blowing.
Peter Walker, director at EOS, said: “We’re really looking forward to coming to Teesworks and are delighted that our plans have been given approval.
“With so much renewable energy development planned for the site, such a supportive environment, and such an experienced team in charge, it makes for the perfect location for our next battery storage facility.
“If we as a country are going to hit our Net Zero ambitions, then energy storage is absolutely essential.”
It is expected that building the battery storage facility will take around 12 months in total and will support more than 100 jobs in the construction sector.
EOS has several battery storage projects already underway in the UK, including a 230MW facility at Newport in South Wales.
Teesworks Limited chairman Chris Musgrave said: “Battery energy storage is another key piece in the clean energy mix at Teesworks, helping to ensure that energy needs can be met from renewable sources regardless of weather conditions.
“We look forward to working with the experienced team at EOS on this project.”
Tees Valley mayor Ben Houchen said: “This project is a further key investment in our plan to transform Teesworks into a powerhouse for renewable energy.
“This battery storage facility will not only support the multi-billion-pound industries of the future we are bringing to Teesside, but will also provide well-paid work that directly benefits local people.”