Are Chinese tariffs wreaking havoc with US battery energy storage developers?

Fluctuating tariffs in China are wreaking havoc with US battery energy storage developers, coming on the heels of a massive reduction in battery prices and US domestic supply chain, industry experts told NPM. China remains the chief market for US imports in the BESS supply chain for major components such as battery cells, to inverters.

Why are battery energy storage systems reopening in the US?

Battery energy storage systems Suppliers of battery energy storage systems (BESS) are beginning to set up shop in U.S., primarily driven by proposed Section 301 tariff increases on Chinese imports, the heavy concentration of battery suppliers overseas, particularly in China, and the manufacturing incentives provided by 45X.

What's going on with energy storage in 2024?

There is a lot at stake here in the supply chain as energy storage added 11 GW+ of capacity in 2024, and grid-scale storage installations are forecasted to reach 13.3 GW in 2025, and 31 states have currently storage under construction, according to ACP.

Is there a rush to import solar equipment before tariff implementation?

Paul Thienpoint, senior director of procurement for solar-and-storage developer BayWa r.e. told NPM in an interview that there had been a rush to get equipment imported ahead of tariff implementation.

Is e-storage a viable US alternative to CSI solar?

One viable US alternative so far has been e-Storage, a unit of Canadian Solar’s CSI Solar unit. E-Storage announced plans to establish a 6 GWh BESS cell, module, and packaging manufacturing facility in Shelby County, Kentucky where production is slated to begin at the end of 2025.