①According to data from the U.S. Energy Storage Association, the United States will independently produce enough grid-scale energy storage batteries domestically for the first time; ②Current annual production capacity of U.S. energy storage factories has reached 70 gigawatt-hours, and is expected to grow to 145 gigawatt-hours by the end of this year, with an annual installation volume of approximately 60 gigawatt-hours; ③Several electric vehicle battery manufacturers have shifted to producing grid-scale energy storage systems, which is one of the reasons for the rapid development of this industry.
Cailian Press, March 24 (Editor: Ma Lan) Amid the impact of high oil prices, global stock markets generally performed weakly in the past week, but the energy storage sector stood out, primarily due to the fact that the energy storage field is gradually becoming a cornerstone industry in the global energy transition.
According to the latest data from the U.S. Energy Storage Association, an industry organization, the United States will for the first time have the ability to independently produce sufficient grid-scale energy storage batteries to meet the surging demand driven by artificial intelligence.
The organization pointed out that the U.S. currently possesses sufficient production capacity to meet market demand for grid-scale energy storage batteries, including the integration of components such as battery cells, power electronics, control systems, and safety equipment, all encapsulated in weatherproof steel casings ready for direct installation. Additionally, by the end of this year, the U.S. will achieve self-sufficiency in the production of battery cells themselves.
Noa Roberts, Executive Director of the U.S. Energy Storage Association, stated that the U.S. now has the capability to fulfill 100% of its energy storage project needs with American-made systems, a stark contrast to the situation one and a half years ago when most energy storage batteries were imported.
Significant increase in production capacity
According to a survey by the U.S. Energy Storage Association, as of the end of 2025, U.S. factories will have the capacity to produce 70 gigawatt-hours of finished grid-scale energy storage systems annually, with production expected to rise to 145 gigawatt-hours by the end of this year. Of this, approximately 60 gigawatt-hours of energy storage systems will be installed over the next two years, indicating an actual surplus in U.S. energy storage battery production capacity.
This is related to the policy support for the new energy industry by the Biden administration. As of the end of 2024, the U.S. had virtually zero production capacity for battery cells used in power grids, but due to the Inflation Reduction Act, manufacturers producing batteries for electric vehicles received financial subsidies from the U.S. government.
By a twist of fate, after the Trump administration took office, the U.S. electric vehicle industry entered a period of poor performance, which prompted electric vehicle battery producers to explore opportunities in supplying energy storage systems for power grids.
Earlier this month, South Korean battery producer LG announced plans, together with its partner General Motors, to convert an electric vehicle battery factory located in Tennessee to produce grid-scale batteries. LG is also converting a factory in Michigan and, under a $4.3 billion supply agreement, will sell these energy storage batteries to Tesla.
In recent years, other companies with battery manufacturing operations in the United States have also made direct investments in grid energy storage products, such as Tesla, Samsung SDI, and SK On.
Meanwhile, the U.S. Department of Energy announced earlier this month that it will allocate $500 million to support the domestic battery industry in the United States. Pete Williams, Chief Supply Chain and Product Officer of Fluence, a major grid energy storage supplier, stated that data center customers are demanding massive power supplies, and the U.S. supply chain can reduce the time required to add energy storage facilities to the grid.
