Members of the U.S. energy sector have committed to investing $100 billion over the next five years to develop and procure American-made battery energy storage systems (BESS), in a move aimed at strengthening domestic clean energy supply chains and reducing reliance on foreign battery inputs.
The announcement, made Tuesday by the American Clean Power Association (ACP) and several utility and storage company executives, outlines a fivefold increase in current investments that could support the creation of fully American-made BESS projects. However, realizing that goal will require streamlined permitting processes and predictable tax and trade policies, the ACP said.
“These commitments demonstrate what success can look like,” said ACP CEO Jason Grumet. “There is a remarkable tension right now between probably the best fundamentals for investment in the energy sector that we’ve seen in a generation and the greatest amount of uncertainty that we’ve seen in a generation.” He cited ambiguity over potential future trade tariffs as a factor delaying long-term decisions.
While costs for battery storage continue to fall and performance improves, much of the battery production remains concentrated in Asia. U.S. firms are now working to onshore more components. Mateo Jaramillo, CEO of Form Energy, said over 80% of his company’s battery content is currently sourced in the U.S., with the remainder coming from Europe and non-China Asia. Form is aiming to eventually source key materials, such as iron, from mines in Michigan and Minnesota.
COVID-19-related supply chain disruptions have also motivated companies to shift toward domestic production. Fluence, for example, is set to deliver its first U.S.-made lithium iron phosphate (LFP) batteries later this year. LG Energy Solution Vertech plans to expand its Michigan-based manufacturing to provide 16.5 GWh of stationary storage capacity in 2024, with an additional 11 GWh in 2026.
Other industry participants, including Wärtsilä, are adopting geographically diverse sourcing strategies to minimize tariff exposure while taking advantage of local tax incentives. The company’s container-based Quantum 3 system now draws components from suppliers in North America, Europe, and Asia.
According to ACP officials, the $100 billion commitment includes roughly $85 billion in new investment on top of an existing pipeline of $10 billion to $15 billion in active projects. The trade group emphasized that with the right policy support, these efforts could catalyze a fully domestic battery storage industry in the U.S.
