U.S. Battery-Storage Sector Faces New Hurdles, Despite Growth

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Written by Will Ploch, Assistant Editor-in-Chief for IIR News Intelligence (Sugar Land, Texas)

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Summary

Battery-storage capacity has grown substantially across the U.S. in recent years, but recent shifts in federal policy could slow the adoption. More than $6 billion worth of related projects are set to kick off in the fourth quarter.

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Another 67 GW by 2030?

Battery energy-storage system (BESS) units have been helping to stabilize swaths of the U.S. power grid as far back as 2022, according to a recent report from the Rocky Mountain Institute (RMI). But the battery-storage sector continues to face headwinds, including an August order from President Donald Trump that hinders the adoption of foreign-produced bulk power components.

Industrial Info Resources is tracking more than $6 billion worth of battery-storage projects that are set to begin construction across the U.S. in the fourth quarter.

"Since 2018, BESS capacity deployed in the U.S. has increased more than 40-fold, with much of this growth occurring in Arizona, California and Texas," RMI said in its report. "Looking ahead, federal interconnection and planning data indicates that roughly 67 gigawatts (GW) of battery-storage projects are planned to come online by 2030."

RMI said this trend would make batteries "the second-largest source of new electric capacity after solar." According to Industrial Info Resources data, about $1.3 billion of the total investment in fourth-quarter BESS kickoffs is attributed to projects at solar power-generation facilities, including DTE Energy Company's addition of a BESS unit at its Fish Creek Solar Plant in Sheridan, Michigan.

DTE is adding 132 megawatts (MW) of battery storage to its solar plant, which generates 132 MW from 320,000 photovoltaic (PV) panels provided by First Solar Incorporated. Industrial Info Resources offers more information on the Fish Creek project in its Global Market Intelligence (GMI) Power Plant and Project databases, where readers can find details--including construction schedules, investment values and necessary equipment--in a plant profile and project report.

Public Service Company of New Mexico, a subsidiary of TXNM Energy Incorporated, is planning a 50-MW BESS unit at its Sunbelt Solar Plant in Waterflow, New Mexico, which is designed to generate 100 MW from 200,000 First Solar PV panels. Construction on both parts of the project is expected to run through the end of 2027. Readers can learn more in a plant profile and project report.

By the Numbers

• More than $6 billion: Total investment value of battery-storage projects set to kick off across the U.S. in the fourth quarter
• 67 GW: Total capacity of battery-storage projects set to be brought online by 2030, according to RMI
• About $1.3 billion: Total investment in fourth-quarter BESS kickoffs attributed to projects at solar-power facilities

A Separate, Less Optimistic View

Despite growing interest, the continued adoption of BESS units across the U.S. is facing a slowdown, after Trump signed an executive order in August that aims to prevent some foreign-made batteries, inverters and other components from being incorporated into the U.S. power grid. This creates a massive hurdle for domestic battery-storage developers, who sourced about 40% of their inverters installed in 2025 from companies based in China, according to Bloomberg.

It is not yet known which individual projects will be affected by the order.

RMI points to California as one of the states that benefits most from BESS adoption, as the technology has helped the state meet a substantial portion of its power demand during some of the most brutal heat waves from recent years. Among the projects in the state nearing construction is LS Power Group's Commerce Energy Storage project in Commerce, California, which is set to hold 250 MW using LG Chemical Limited's lithium-ion technology.

The Commerce project is an example of stand-alone battery storage, which accounts for nearly $4 billion of the roughly $6 billion in fourth-quarter BESS kickoffs. Readers can learn more from a detailed plant profile and project report.

The Industrial Info Resources GMI Project and Plant databases offer a full list of detailed reports for projects mentioned in this article, and a full list of related plant profiles.

Industrial Info Resources also offers a full list of reports for battery-storage projects that are set to begin construction across the U.S. in the fourth quarter.

Key Takeaways

• Since 2018, BESS capacity deployed in the U.S. has increased more than 40-fold.
• But the U.S. BESS market is reeling from an executive order that hinders the adoption of foreign-produced bulk power components.
• It is not yet known which individual projects will be affected by the order.

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About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news, and analysis on the industrial process, manufacturing, and energy-related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified, and verified plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).