China · U.S. · Donald Trump · MIT Technology Review
Depending on the detailed guidance from the Department of Energy, which is expected by the end of the year
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These will likely be more expensive than Chinese imports, says Isshu Kikuma, an energy storage analyst at BloombergNEF.
Key facts
- New factories from LG Energy Solutions, Samsung SDI, Ford, and SK On are set to come online or ramp up by next year
- Back in 2022, the US government designed the tax credits that were part of the Inflation Reduction Act to restrict where a battery’s minerals could be mined, processed, or recycled, as well
- This article is from The Spark, MIT Technology Review ’s weekly climate newsletter
- Those tax credits underwent a makeover in 2025, but the Trump administration has taken a similar tack
Summary
The US is hitting records for the rapid growth of its energy storage market. Crucially, this is all happening with the help of cheap Chinese batteries, though there’s been a concerted effort to reduce the US’s reliance on them. There’s an argument to be made about reducing reliance on any single source of a crucial energy technology. This is hardly America’s first push to move away from Chinese influence in the battery supply chain. Back in 2022, the US government designed the tax credits that were part of the Inflation Reduction Act to restrict where a battery’s minerals could be mined, processed, or recycled, as well as where a battery and its components were assembled.