According to the Clean Energy Association's (CEA) Q2 2025 Energy Storage Supply, Technology, and Policy Report, over 20 GWh of planned energy storage capacity for delivery in 2028 has been canceled so far this year.
These cancellations include KORE Power's 9.6 GWh project in Arizona and FREYR's 10.2 GWh project in Georgia. A series of projects with 1 to 5 GWh of generation capacity have also been postponed in the Midwest and Southeast, as policy uncertainty and financing difficulties have hit small producers hard.
If annual demand reaches the projected 100 GWh target by 2028, the loss of 21 GWh could have a significant negative impact on the industry.
Even so, CEA found that locally integrated systems are becoming a more viable option in the United States due to growing capacity from original equipment manufacturers (OEMs) and domestic integrators. This increased capacity makes it easier for integrators to build local networks and obtain spare or replacement parts.
The report notes that a growing number of integrators are shifting away from locating manufacturing in lower-cost countries and focusing on integrating manufacturing capabilities with end markets. This includes one Chinese manufacturer that recently opened a 10 GWh battery manufacturing facility in Texas.
From a manufacturing cost perspective, the resulting price is "quite reasonable." Integrated energy storage systems do tend to be 15-20% more expensive; however, the report notes that "even if costs increase due to reduced Chinese content, locating in the US is the best option for mitigating tariff risk."
However, regarding cathode and anode materials, the CEA notes that minimizing tariff risk through North American supply chains is "difficult but possible" due to tariffs on steel, aluminum, and battery components.
For manufacturers interested in expanding outside the US, sourcing batteries and systems from South Korea and parts of Southeast Asia may be the best option to circumvent tariffs of up to $40/kWh. Therefore, according to the report's findings, domestic hardware integrators are best positioned to "mix and match" supply sources to achieve the lowest costs.
