US Now Produces Enough Grid Batteries to Meet Demand
Why this is here: The U.S. achieved 100% domestic capacity for grid battery systems thanks to LG Energy Solution Vertech expanding its initial 4 gigawatt-hour production line to 16.5 gigawatt-hours in just one year.
The United States can now produce enough grid-scale batteries to meet domestic demand. This marks a significant shift from a year and a half ago when most systems were imported. The onshoring push began with the 2022 Inflation Reduction Act, incentivizing domestic production and use of American-made products.
By the end of 2024, U.S. factories have the capacity to produce approximately 70 gigawatt-hours of finished grid storage systems annually. Capacity is expected to reach 145 gigawatt-hours by year’s end, exceeding projected installation rates of around 60 gigawatt-hours annually. Cell production is also rapidly increasing, reaching 20 gigawatt-hours by the end of 2025 and projected to hit 96 gigawatt-hours this year.
LG Energy Solution Vertech initiated this change by completing a dedicated grid storage cell production line in Michigan. Several other companies, including Tesla and GM, are also investing in or repurposing facilities for grid battery production, some shifting away from electric vehicle battery plans. The Department of Energy recently announced $500 million to support domestic battery material processing and recycling.