Despite uncertainty, discussions at the Intersolar & Energy Storage North America 2025 conference made clear that strengthening domestic manufacturing is a priority of the new administration.
The U.S. battery industry is in a state of flux as federal policy shifts create uncertainty in the energy storage sector.
Despite the unpredictability, one clear priority has emerged in recent weeks: strengthening domestic manufacturing.
“The current administration has been very consistent around American technology and true American companies benefiting from American taxpayer funds,” Hugh McDermott, the senior vice president of business development and sales at ESS, Inc., told pv magazine USA.
He explained this America-centric approach will give a leg up to battery manufacturers who source materials and build systems within the U.S., as domestically produced solutions are increasingly prioritized for incentives and tax credits.
For instance, the 45X advanced manufacturing production tax credit has played a key role in accelerating U.S. battery manufacturing. The ability to monetize these credits has been vital for securing funding, even attracting traditionally conservative financial institutions such as J.P. Morgan Chase.
And products made in the U.S. are less vulnerable to tariffs.
“Tariffs have continued to be the mechanism of choice for our government to manage a lot of different types of trade issues we have here in the U.S.,” said Jim Wood, the CEO of module producer SEG Solar, during a presentation at Intersolar & Energy Storage North America 2025. He explained this has been true under various presidents of both parties. “It made a lot more sense to start reshoring our supply chain.”
Many companies are investing in U.S.-based manufacturing to mitigate costs associated with fluctuating tariff rates, though the transition is often expensive up front. According to the Solar Energy Industries Association (SEIA), since 2022, U.S. solar and storage manufacturing investments have more than doubled, with over $40 billion announced investments.
SEIA reports that battery-cell and pack facilities that were announced thanks to federal manufacturing tax credits have begun to come online and more are expected in the next few years. In addition, an announced 580,000 metric tons of battery materials should to be online by the end of the decade.
Supply chain security and resilience is also a major concern.
Companies are increasingly focusing on developing robust supply chains that can weather global disruptions. Shifting their material sourcing strategies lets them ensure reliability and take advantage of domestic content incentives.
“The reason our customers buy from us over others is because we have surety of supply,” said Wood. By producing all products within U.S. borders, he explained, companies are much less impacted by volatile prices and bottlenecks that often plague foreign supply chains.
Thomas Gösswein, CEO of Germany-headquartered energy storage manufacturer, Fenecon, Inc, explained that all the tools used in their Greenville, South Carolina plant are American-made and purchased locally. Fenecon takes EV modules from OEMs and performs software and hardware engineering to create new storage systems.
“My guys are American,” he said at Intersolar. “We buy and make American products to make America great. That’s their idea, and I’m proud of it.”
Domestic battery manufacturing is on the rise nationwide, and the industry shows few signs of slowing down.
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