Trump grid order likely to cause energy storage delays, cancellations: BloombergNEF

On August 26, President Trump signed an executive order restricting foreign-made equipment used in the power grid, including batteries, transformers, and inverters. Analysts at BloombergNEF say this is likely to slow down or cancel some large-scale battery storage projects across the country, as developers wait for more guidance, look for new suppliers, or redesign systems. China supplies about 80% of the world's lithium-ion battery production and roughly 40% of the inverters used in the U.S. (through factories in India and Southeast Asia), so the order could disrupt a large share of the supply chain.

This adds to separate rules from the U.S. Treasury Department, finalized earlier this year, that already limit how much project developers can rely on Chinese-linked suppliers if they want to keep certain federal tax credits. Together, these rules could push Chinese battery and inverter makers out of the U.S. market entirely, according to a BloombergNEF analyst. Equipment makers say they need more clarity on how the order will be applied, especially for software tied to grid equipment.

For homeowners, this order applies to large, utility-scale battery projects on the power grid, not home battery or solar-plus-storage systems. Still, it signals broader supply chain pressure on batteries and inverters, the same categories of equipment used in home energy storage. Four new U.S. battery factories have opened this year, with a few more expected by year's end, which could eventually mean more domestically made options.