US BESS investment ‘already impacted’ by tariffs, but industry predicted to remain resilient

AI generated summary

The recent announcement of reciprocal tariffs by the US government has significantly impacted the battery energy storage system (BESS) industry, which heavily relies on Chinese imports. Although a 90-day reprieve was granted, the ongoing trade tensions have led to project delays and cancellations, with some major investments being put on hold. Industry experts note that while the tariffs pose challenges, the renewable energy sector has historically shown resilience and adaptability in the face of policy changes.

Despite the tariff increases, analysts suggest that the US BESS market is somewhat prepared, having stockpiled components in anticipation of such measures. Battery prices have also decreased significantly over the past few years, which may help mitigate the impact of tariffs. However, the uncertainty surrounding future policies, including the Investment Tax Credit (ITC), poses a greater risk to the industry than the tariffs themselves. As the market navigates these challenges, there is potential for shifts in supply chains and increased demand for domestically produced components.