April 29 (Reuters) - Manufacturers and developers of
U.S. energy storage projects said their industry will invest
$100 billion this decade to create a wholly domestic battery
supply chain, but warned the goal was contingent on support from
Washington.
The American Clean Power Association, a trade group that
represents energy storage companies, said its members aimed to
decrease the sector's reliance on China, which today supplies
the majority of U.S. batteries.
Storage projects, therefore, are poised to be hard-hit by
President Donald Trump's decision to impose tariffs of 145% on
Chinese imports. The industry is pressing for a more nuanced
approach to incentivizing domestic production.
"China stole our supply chain over a decade, we're not going
to get it back in 10 weeks," ACP CEO Jason Grumet said on a call
with reporters ahead of the announcement. "If the administration
starts to view batteries as a critical national security
technology, we will shift away from the kind of broadbased
reciprocal tariffs, which are a very kind of blunt shock-and-awe
attention-getter, into that kind of strategic conversation."
Grid storage projects, primarily large lithium-ion
batteries, can help resources like wind and solar energy by
storing power when the sun is shining and the wind is blowing so
that it can be used later.
U.S. utility-scale battery capacity rose 66% last year and
was second only to solar in capacity additions to the nation's
grids, according to the U.S. Energy Information Administration.
But the clean-energy sector has been on high alert since
Trump took office in January, pledging to boost fossil fuels and
undo the climate and renewable energy policies of his
predecessor, former President Joe Biden.
The $100 billion in investment will create 350,000 jobs and
would include $10 to $15 billion in active projects, ACP said.
Those include a Tesla battery cell facility in Sparks,
Nevada, a Fluence cell factory in Tennessee, LG's
plant in Holland, Michigan, and a Weirton, West
Virginia, facility by startup Form Energy.