US Energy Storage Manufacturing Faces Challenges Amid New Tariffs and Policy Changes

Recently, the American Clean Energy Association (CEA) released a report indicating that the US energy storage manufacturing sector is experiencing significant challenges due to new tariffs and policy adjustments. The report highlights that multiple new tariffs on energy storage batteries and components have led to the cancellation of approximately 21 GWh of battery storage capacity from three US companies this year, while five other companies have postponed plans for over 19 GWh of capacity. The report emphasizes that the US's high dependence on Chinese battery materials, which account for over 60%, is a primary cause. Notably, the global energy storage industry, after years of rapid development, is also witnessing a market consolidation where leading companies are gaining a larger share. In China, prominent firms such as CATL, EVE Energy, and others are nearing full production capacity, while smaller companies lacking core competitiveness are facing market elimination. Recently, two solid-state battery projects were terminated due to partnership issues, highlighting the volatility in the industry. A project by Wanrun New Energy, aimed at establishing a comprehensive industrial base, has also been quietly terminated after two years without progress. The year has seen over 15 energy storage projects facing delays or cancellations, with notable cases including Hai Sida's project and Changying Precision's postponement. The adjustments reflect a transition in the industry towards rational development driven by technological iteration and market differentiation, influenced by changing policies and a tightening financing environment. While the collective slowdown of energy storage projects may impact industry confidence in the short term, it could also lead to a healthier and more rational market in the long run, serving as a warning to less competitive firms against blindly following market trends.