“The US storage market is in a state of flux” according to Rho Motion’s Head of Research Iola Hughes at Benchmark’s GIGA USA 2025 event in Washinton DC. Hughes had the opportunity to sit down and discuss the market with representatives from Fluence, Samsung SDI, REPT Battero, and Prelude Ventures.

Strong growth in the US market is being overshadowed with uncertainty

Despite 24% growth across grid and BTM installations Jan-Apr 2025, and BESS accounting for a growing share of total battery demand, overshadowing the industry at present is the significant tariff uncertainty and the proposed “Big Beautiful Tax Bill”.

The US BESS supply chain is highly reliant on China and therefore has been hit hard by sweeping IEEPA tariffs.

  • In 2024, 99% of LFP cathode deployed in the US was produced in China
  • For anodes, 92% were produced in China in 2024, and the sector is facing an ongoing Antidumping and Countervailing duties investigation.
  • For cells, domestic LFP production is just now starting at small volumes far below that of demand, leaving player reliant on Chinese imports.

Additionally, the proposed early phasedown and tightening of FEOC rules of 48E and 45X in the “Big Beautiful Tax Bill” could remove two significant support mechanisms for both BESS project development and the BESS domestic supply chain development.

Key take aways from industry leaders at GIGA USA 2025

Fluence – Suzanne Leta

  • The company has made significant investments into establishing a domestic supply chainover the last few years, developed under the pretence of receiving both the domestic content bonus adder and 45X for pack manufacturing.

Samsung SDI – Paul Dorsey

  • The need for tax credits to support the scaling of battery storage in the US is essential.
  • The company is currently building out its portfolio of storage products, while it is focused on NCA chemistry currently, it will shift towards LFP in the coming years.

REPT Battero –  Dr Vikash Venkataramana

  • REPT Battero aims to supply the US market via Indonesia.
  • Under the current geopolitical uncertainty players are responding in two ways: either a “wait and see” attitude whilst others are looking to stockpile and accelerate safe harbouring efforts assuming the “Big Beautiful Tax Bill” passes in its current format.

Prelude Ventures – Katie Clasen 

  • Provided a unique perspective how companies across Prelude’s clean tech portfolio are also facing these issues, particularly due to the high tariffs on Chinese equipment that can have a significant impact on project CAPEX
  • Katie discussed Prelude’s portfolio company, Form Energy and the opportunities in long duration storage.

The panel discussed other developments including continued improvements of LFP, innovation in software, and the potential for sodium ion.