The Inflation Reduction Act’s 45X tax credit could help reduce the current 20% pricing gap between U.S. and Chinese batteries, according to Clean Energy Associates (CEA). The report also noted global production overcapacity pushing down battery prices, with major Chinese manufacturers claiming prices as low as $60/kWh. Despite these challenges, global battery energy storage demand grew by 60% from 2023 to 2024 and is expected to grow 21% annually through 2028. However, CEA expects global lithium-ion battery storage production over capacity to worsen through 2025. Higher tariffs on certain imported battery materials could increase costs for U.K.-based battery integrators by 11% to 16%, depending on how much value the integrators add in the United States.
Solar Dominates US Energy Capacity Growth
The Federal Energy Regulatory Commission (FERC) has published data showing that solar accounted for over 75% of US electrical generating
