Would-be battery manufacturers that could serve the US energy storage industry with domestically made cells are facing a “perfect storm,” Energy-Storage.news has heard.

Update 28 August 2024: Redwood Coast Energy Authority (RCEA) voted to continue being part of the ESSA, as did CC Power.

The Inflation Reduction Act (IRA) put battery storage into the mainstream of the US energy industry, but also created supply chain complexities, writes Rauni Jaskari of Wärtsilä Energy Storage and Optimisation (Wärtsilä ES&O).

The new tariffs on batteries from China will increase costs for US BESS integrators by 11-16%, consultancy Clean Energy Associates said, adding that new guidance around the domestic content ITC adder will make it easier to access.

We hear from developers, IPPs and upstream battery sources about the US’ decision to massively hike tariffs on batteries and battery components from China.

The Biden Administration will more than triple the tariffs paid on batteries and battery parts imported from China, from 7.5% today to 25%, in a huge move for the industry announced today.

“Overall we are very happy with the direction of the budget,” says Dr Rahul Walawalkar, president of the India Energy Storage Alliance (IESA).

India’s upcoming Union Budget should include tax-based incentives for energy storage, the India Energy Storage Alliance (IESA) has said.

Actions taken this month by the US government to support solar industry unlikely to come at the expense of support for energy storage.

Specific recommendations from a prominent industry group for tax reforms and other changes to support energy storage were not included India’s Union Budget for 2021-2022, but certain aspects of the budget such as the promotion of domestic self-reliance have been welcomed by it.