Battery energy storage system (BESS) integrators Fluence and Saft have launched US domestic manufacturing, of modules and BESS containers respectively.

System integrator Fluence Energy and investor Excelsior Energy Capital have entered into a supply agreement for 2.2GWh of BESS, which Fluence claims will utilise US-manufactured battery cells and modules.

Global battery energy storage system (BESS) integrator Fluence saw an 11% revenue drop in revenues in the three months ending 31 March, 2024, while it is also launching a higher energy density product and US module production this year.

The energy storage arm of Canadian Solar said the technology ‘has more complexity than solar’ when it comes to nearshoring manufacturing away from China, and local cell manufacturing could be part of the long-term strategy to leverage domestic content incentives.

American Battery Factory has started construction on its gigafactory in Arizona, US, which will produce lithium iron phosphate (LFP) battery cells.

BESS projects in the US need to be 40% US-made to qualify for the ITC domestic content adder, rising to 55% from 2027 onwards, the IRS has said.

There is a long way to go before the new standalone storage investment tax credit (ITC) starts to really make a dent in the market, speakers and delegates at the Energy Storage Summit USA last month said.

An Indian government scheme to support domestic battery manufacturing received bids totalling 130GWh of proposals, more than double the anticipated 50GWh of capacity the incentives will support. 

The India Energy Storage Alliance (IESA) has welcomed provisions in finance minister Nirmala Sitharam’s Union Budget 2020-2021 to support renewables and prioritise climate change policy, although the group hopes more will be done to support in-country manufacturing of batteries for applications including ESS.

Australia’s strong and ongoing potential for energy storage paired with solar PV has seen international and domestically-headquartered companies race to gain market share.