July 17, 2025: The US energy storage market faces major challenges in the years ahead as investors manage the “political whiplash” impact of the newly enacted ‘One Big Beautiful Bill Act’, say analysts.
The flagship policy of US president Donald Trump, which he signed into law on July 4, was welcomed as decisive action to help preserve advanced manufacturing production credits for battery manufacturing by lead industry trade body Battery Council International.
However, energy analysts at Wood Mackenzie warned on July 10 that the new laws will pile pressure on energy storage supply chains.
And while investment tax credit eligibility is maintained through to 2030, energy storage faces “onerous ‘foreign entity of concern’ restrictions” that likely preclude purchasing battery cells from competitor nations such as China, Wood Mackenzie said.
According to the firm’s analysis, the risks and costs of supply chain shifts will put downward pressure on storage growth, despite being one of the few resources that can be added quickly to support growing demand.
And with EV incentives eliminated, reducing Wood Mackenzie’s US battery electric vehicle market share forecast for 2030 from 23% to 18%, the firm said most EV growth will now come from companies with established supply chains — or non-domestic players using BEVs to enter premium markets.
David Brown, director, energy transition research for Wood Mackenzie, said: “The policy prescriptions increase the likelihood of Wood Mackenzie’s delayed energy transition scenario for the US.
“The legislation serves as a harbinger of central challenges facing energy investors — managing political whiplash when investing in assets with 30-year-plus lifespans amid dramatic policy swings every election cycle.”
However, the BCI said the retention of critical manufacturing incentives in the new Act demonstrated a clear understanding that American battery manufacturers are essential to the nation’s economic security, energy independence, and competitive advantage.
BCI president and executive director Roger Miksad said: “This vote sends a powerful message that America is committed to building and maintaining the world’s most advanced battery manufacturing ecosystem.
“These credits don’t just support individual companies — they strengthen our entire domestic supply chain and ensure America remains the global leader in battery innovation.”
Last April, BCI backed calls by the US president for a new partnership between the government, industry and academia to accelerate innovation.
