When an object is lifted up it gains in potential energy. Where is the potential energy stored?
Potential energy is a weird concept. It’s not really “stored” anywhere per se, because the whole concept of potential energy depends on reference points. If you say an object has 0 potential energy (ie it’s on the ground), what happens if you dig a tunnel underneath it? Nothing has changed about the object, but it suddenly has more potential energy…? The whole way potential energy works is in the energy it can accelerate when the earth’s gravity pulls it down. So, it’s not really “stored” anywhere, even though it can be released.