US energy storage costs could surge up to 50% as Trump tariffs target Chinese battery imports that supply over 90% of the market, industry analysts warn.
Chinese lithium-ion battery cells now face tariffs as high as 145%, forcing project developers to absorb higher costs, delay construction, or renegotiate contracts. Battery system costs have already jumped 15% to 25% year-over-year, with cell prices rising from under $100 per kilowatt-hour in 2024 to above $130 per kilowatt-hour.
The impact threatens deployment of grid-scale batteries just as utilities rush to add storage for renewable energy. Wood Mackenzie forecasts annual installations will grow just 10% per year through 2028, down from 25% growth in 2024.
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Domestic battery manufacturing can meet only 6% of US demand in 2025, creating few alternatives to Chinese imports. Some companies have stockpiled inventory, but those reserves are expected to run out by late 2025.
The Energy Information Administration projects 18.2 gigawatts of utility-scale battery storage will be added in 2025, but policy uncertainty around both tariffs and clean energy incentives is prompting developers to delay investment decisions.
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