Transatlantic clean investment monitor 3: battery manufacturing
The domestic build-out of battery manufacturing capacity accompanies another trend: growing foreign investment in US and European plants. The overwhelming majority of
The US may also be headed for a glut of domestically produced batteries. South Korea's LG Energy Solution and SK On Co. —the third- and fifth-largest automotive-battery manufacturers, respectively—have plans on the books to build a total of 10 US plants.
Two major areas of international trade that will remain causes of concern for energy storage projects are the application of tariffs and supply chain integrity.
As the transition from combustion-engine to electric vehicles has progressed, along with the growing importance of stationary grid-connected batteries, investment in battery manufacturing has grown. While much of this investment has so far been in China, investment is significant and growing in Europe and the US.
Mitigating tariff risk in battery energy storage system (BESS) projects is crucial for ensuring project financial viability, as tariff changes can significantly affect cost structures and overall project economics.
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