The U.S. energy storage industry has made critical progress in domestic manufacturing. According to the latest report from the U.S. Energy Storage Alliance, the U.S. now has the capacity to meet 100% of its energy storage system needs with domestic production, marking an important step forward in expanding domestic battery manufacturing and reducing reliance on Chinese imports. The report states that the U.S. assembled battery system manufacturing capacity has increased from 7 gigawatt-hours (GWh) in 2023 to about 70 GWh currently. Cell capacity has also risen from zero in 2024 to 20 GWh, which can meet about one-third of the current domestic market demand, and is expected to grow fivefold by the end of 2026, surpassing domestic demand. Industry experts believe that the main factors driving this expansion include a surge in data center electricity demand fueled by artificial intelligence, as well as policy support such as tariffs and tax credits. However, although the U.S. is accelerating its efforts to localize energy storage systems and cells, China still dominates global cell manufacturing, and Chinese products remain generally cheaper. Nevertheless, with the U.S. imposing tariffs on Chinese products and retaining battery tax incentives, U.S.-made cells and energy storage systems have become more cost-competitive domestically. Analysts point out that U.S. utility companies are indeed increasingly inclined to purchase local products, but even with policy support, the price gap between U.S. and Chinese suppliers remains small. This means that while the U.S. energy storage manufacturing capacity has significantly improved, it will take some time before it truly reshapes the global battery supply landscape.
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Original: toutiao.com/article/1860060448167945/
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