(Bloomberg) —
Energy storage companies have committed to spending $100 billion this decade to expand US battery manufacturing, a trade group reported, as President Donald Trump’s tariffs on China threaten to stunt the industry’s growth.
Power companies have been adding large-scale batteries to the US electric grid at a rapid pace, both to prevent blackouts and store excess renewable energy for when it’s needed. But most of the batteries are imported, with 69% of lithium-ion imports coming from China. Chinese batteries now face a 155.9% tariff, according to BloombergNEF, potentially delaying some projects and forcing the cancellation of others.
The American Clean Power Association said companies are building or expanding 25 US factories for grid-scale energy storage, with $10 billion to $15 billion of investments now in progress. The group’s $100 billion estimate represents both money committed for investment in new plants by 2030 as well as purchases of US-made batteries to install in the field.
“We think that this is a realistic goal if we have any version of a stable policy environment,” said Jason Grumet, ACP’s chief executive officer, in a briefing with reporters. “We are not looking for a perfect policy environment or even a predictable policy environment, but just a manageable policy environment.”
Read More: Trump Tariffs Threaten Spread of Big Batteries on the Power Grid
Former President Joe Biden made creating a domestic battery supply chain a top priority, using tax credits to spur plant construction. In announcing its investment estimate, the association sought to tie batteries into Trump’s own energy policies, portraying storage as part of “Unleashing American Energy Dominance.”
For now, however, the US industry remains highly dependent on imports, not just for finished batteries but their components. BNEF estimates that almost all battery separators, 83% of battery cathodes and 67% of anodes will need to be imported this year to meet US domestic demand.
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