American energy sector set to invest $100B in battery storage by 2030
Members of the US energy industry has committed to investing $100 billion over the next five years to build and buy American-made batteries for large, utility-scale deployments of battery energy storage systems (BESS).
Executives from the American Clean Power Association (ACP) and several utility company representatives said Tuesday that they were committed to a fivefold increase in active investments that could, according to the Association, lead to 100% American-made BESS projects – but that vision depends on both a streamlined permitting environment and predictable tax and trade policy, the ACP said.
This commitments “demonstrate what success can look like,” said ACP CEO Jason Grumet, adding that many industry players have been waiting in a sort of holding pattern until some long-term clarity develops around Trump’s tariff and trade policies. “There is a remarkable tension right now between probably the best fundamentals for investment in the energy sector that we’ve seen in a generation and the greatest amount of uncertainty that we’ve seen in a generation.”
Those fundamentals involve rapidly dropping battery costs with increasing density – and that efficiency improvement is coming with reliability, too, Hyundai joining Tesla (and others) in delivering batteries good for hundreds of thousands of miles of driving. The tension, of course, comes from the fact that most batteries, today, are made in Asia.
Form Energy CEO Mateo Jaramillo says his company sources more than 80% of its battery content in the US and much of the rest from Europe and “non-China Asia.” And, while they’re working to re-shore even more, they remain exposed to heavily tariffed Chinese-made inputs.
Form eventually hopes to source raw iron from US mines in Michigan and Minnesota – and they’re not alone. Executives from other companies spoke up as well:
COVID-era disruptions across the global battery supply chain convinced Fluence that an energy storage market as robust as the United States’ needed a stronger domestic manufacturing base, Fluence Americas President John Zurancik said in the press briefing. The company’s U.S. investments are now bearing fruit as it expects to deliver its first U.S.-made lithium-iron-phosphate, or LFP, batteries this week for deployment later this year, he said.
Like Fluence, LG Energy Solution Vertech expects to significantly expand its U.S. manufacturing operations in 2025 and 2026. The South Korean battery powerhouse will adapt existing production lines at its Holland, Michigan, factory to deliver 16.5 GWh of stationary storage batteries this year and add 11 GWh of new capacity in 2026, its CEO said in a statement provided by ACP.
Even industry stalwarts like Wärtsilä have begun sourcing components for the container-based Quantum 3 BESS system we covered last summer from a geographically diverse set of suppliers, with manufacturing capacity across different regions of North America, Asia, and Europe. This should enable the company’s customers to take advantage of any local tax incentives while avoiding the kind of tariffs impacting global battery markets.
The ACP’s announcement adds about $85 billion to a set of “active investments” worth $10 billion to $15 billion, executives with the trade group said in a press briefing.
Electrek’s Take
Battery energy storage just makes sense – and it’s being leveraged in smart ways by companies like Zenobē, who are using smart BESS deployments to help hold down ratepayer costs while improving grid resilience and reliability. Volvo, too, is working to develop rapidly deployable BESS solutions that can support temporary job sites and disaster relief efforts.
Then there’s the rich people. Located in Abu Dhabi, the world’s largest storage project will feature a 5.2 GW solar PV plant coupled with a 19 gigawatt-hour (GWh) BESS. You can check that out here, then let us know what you think of all these projects in the comments.
SOURCE: Utility Dive; featured image via Wärtsilä.
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On today’s budget-conscious episode of Quick Charge, we’re building up to the reveal of a new, more affordable Tesla Model Y tomorrow that will almost definitely not be a cheap pile of misaligned plastic body parts with inconsistent panel gaps that’s utterly incapable of turning the tide on Tesla’s global decline.
Plus, we’ve got news that Tesla is in hot water with California over its alleged mishandling of its insurance business, revisit the lies told about Cybertrucks drag racing Teslas, and look at the incredible 110% increase in EV sales over at GM that’s driving Cadillac’s renaissance.
Today’s episode is brought to you by Climate XChange, a nonpartisan nonprofit working to help states pass effective, equitable climate policies. The nonprofit just kicked off its 10th annual EV raffle, where participants have multiple opportunities to win their dream model. Visit the site at CarbonRaffle.org/Electrek to learn more.
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Waev Inc. has just unveiled the GEM eX, a new electric utility vehicle designed to bridge the gap between street-legal low-speed vehicles (LSVs) and true off-road work machines. The company calls it the most versatile electric work UTV yet.
Unlike most golf cart–based UTVs or high-speed recreational rigs, the GEM eX is purpose-built for commercial, industrial, and government fleets that need to move between city streets, job sites, and rough terrain, all while staying emissions-free.
The vehicle features a top speed of 25 mph (40 km/h) and is said to be DOT street-legal as an LSV on roads up to 35 mph (56 km/h), giving it a clear advantage over most off-road-only competitors.
Power is provided by a 6.5 kW motor in a rear-wheel drive setup with a limited-slip rear differential. An 8 kWh battery provides enough juice for a claimed maximum range of 85 miles (137 km).
The eX comes with several fleet-focused safety and utility upgrades, including 3-point seat belts, roof crush protection, backup camera, mirrors, pedestrian noise emitter, and a robust bumper system. It rolls on street, winter, or all-terrain tires, and the chassis features 9.5 inches (24 cm) of ground clearance, 6.5 inches (16.5 cm) of suspension travel, and a 50-degree approach angle for climbing curbs or crossing uneven work terrain.
Hill-hold assist and single-pedal descent control make it easy to handle on slopes, while a limited-slip differential helps maintain traction without chewing up turf.
In the back, a 1,250 lb (567 kg) composite dump box can fit a full-sized pallet and comes with gas-assist or electric lift options, while towing capacity matches that at 1,250 lb (567 kg). Optional hard doors, roll-down windows, and HVAC with heat and A/C turn it into a true all-weather workhorse.
The lithium iron phosphate battery pack is said to provide a long lifespan for extra durability in extreme climates from –20°F to 140°F (–29°C to 60°C). Charging is flexible via 120V, 240V, or J1772 public stations, and Waev backs the battery with a 7-year warranty – on par with many passenger EVs.
“We field-tested the GEM eX everywhere from Arizona deserts to Minnesota winters,” said Sven Etzelsberger, Waev’s Director of Engineering. “Every piece of customer feedback went back into this vehicle. The result is a work UTV that’s refined, reliable, and ready to go.”
The GEM platform has expanded significantly over the years, from its humble beginnings as a simple people mover to more recent adaptations into everything from ambulances and emergency vehicles to the new GEM eX electric UTV.
Priced at $24,955, the higher purchase price may be one of the few downsides to the quieter, cleaner, and easier to maintain alternative to traditional gasoline-powered UTVs.
Electrek’s Take
Waev’s new GEM eX seems to hit a sweet spot that’s been missing – a street-legal, electric work UTV tough enough for real jobs yet affordable and easy to maintain. For fleet managers juggling both paved and off-road environments, this could be a serious game-changer.
While the price is high, it comes in at significantly less than other well-known models like Polaris’ Zero-powered electric RANGER UTV.
At the same time, there are still more affordable options like those from KANDI that offer more power for a lower price. However, without GEM’s storied brand legacy and increased national support, cheaper options may not have the staying power to compete.
So sure, it’s expensive, but at least I’m glad to see more options coming to the market, especially from brands that have been around for years. Here’s to hoping for more affordable options in the future.
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