The U.S. energy storage sector is facing significant turbulence as approximately 21 GWh of planned battery cell capacity for 2028 has been either canceled or delayed so far in 2025. According to the latest Q2 2025 ESS Supply, Technology, and Policy Report from Clean Energy Associates (CEA), smaller manufacturers are struggling to keep projects afloat due to policy uncertainty, restrictive tariffs, and financing challenges
Notably, major cancellations include KORE Power (9.6 GWh), FREYR (10.2 GWh), and iM3NY (0.8 GWh), with other players like Gotion, ONE, Kontrolmatik, Microvast, and ABF experiencing delays in their construction timelines. These disruptions highlight the ongoing instability in U.S.-based battery manufacturing despite growing domestic demand for energy storage systems (ESS).
CEA’s report underscores how U.S. import tariffs—ranging from Section 301 and 232 duties to multiple waves of the International Emergency Economic Powers Act (IEEPA) tariffs—are contributing to escalating costs across the storage supply chain. These policies impact everything from battery cells and containers to critical components like anodes and structural enclosures, with some tariffs as high as 50% and potential anti-dumping duties exceeding 900%
While Southeast Asia is emerging as a promising alternative manufacturing hub, current announcements remain primarily focused on EV supply chains. However, CEA notes that ESS capacity may soon follow a similar path, especially with the growing trade barriers in the U.S.
In a broader context, the report also highlights the EU’s new Clean Industrial Deal State Aid Framework (CIDSAF), which introduces capital and operational subsidies for battery manufacturers. Though not as aggressive as the U.S. IRA, it marks a strategic pivot for European industrial policy and offers a potential blueprint for supporting ESS growth amid global competition
