U.S.-based battery storage technology firms are uniting to commit to investing $100 billion toward building and buying American-made energy storage.
This week, the American Clean Power Association announced the $100 billion commitment on behalf of many of the nation’s biggest energy storage companies. The arrival of new tariffs on China and other supply-chain factors has moved energy storage industry leaders in the U.S. to strengthen the domestic supply chain elsewhere, including at home.
U.S. battery storage installation has expanded beyond 26 GW this past year by adding more than 12 GW, according to various reports, and provides the balancing complement to solar energy and microgrid projects. Lithium-ion still dominates the battery chemistry landscape, but researchers and companies are advancing on alternatives such as zinc-based, iron flow and sodium-ion technologies.
“The energy storage industry is providing essential power when needed most while boosting domestic manufacturing and creating jobs across the country,” Jason Grumet, CEO of the American Clean Power Association, said in a statement. The “historic commitment will invest billions of dollars into American communities and position the United States as a manufacturing leader in battery technology that is critical to national and grid security.”
Among the major battery storage technology companies which have announced major manufacturing and supply moves back to the U.S. include Form Energy, Fluence, LG Energy Solution, FREYR and AESC. Last year, the U.S. Department of Energy announced more than $3 billion in funding for 25 projects boosting domestic production of advanced energy storage and battery materials within the U.S. The Biden-era Infrastructure Law allocated nearly $7 billion on strengthen the U.S. battery supply chain.
“Battery energy storage is keeping the lights on and costs low for consumers across the county. Developers are committed to sourcing batteries made in America to deploy this essential energy resource to more Americans for energy stability and cost savings in the face of increasing demand,” said Stephanie Smith, chief operating officer of renewable energy investor Eolian. “As manufacturers begin ramping up domestic supply, streamlining federal and state policies and permitting processes will make the difference in getting this industry moving quickly and competitively.”
Fluence Energy, for instance, has opened or is working to open manufacturing facilities in Utah, Texas, Tennessee and Arizona. LG Energy Solution is ramping up to begin production this year at its Holland, Michigan facility. Form Energy is starting its manufacturing at a plant in Weirton, West Virginia.
“Battery energy storage is key to meeting America’s rapidly expanding electricity needs,” said Craig Cornelius, President and CEO of Clearway Energy Group. “As we deploy energy storage at record pace, this investment reflects the industry’s commitment to building these critical grid infrastructure projects with American-made batteries.”
Although China and Australia still dominate much of global lithium supply, other world leaders in LI production include Chile and Brazil. In the U.S., GeoFrame Energy announced earlier it would break ground on a lithium extraction site in east Texas this summer.