Energy Storage News•3 months ago
EV slowdown creates potential lifeline for US energy storage amid FEOC, tariffs
Key Takeaway
New tariffs and FEOC restrictions will increase US BESS project costs, but a potential EV slowdown could mitigate supply pressures, offering a complex outlook for developers and large consumers.
AI Summary
- •New FEOC restrictions and a 25% Section 301 tariff on Chinese-origin battery energy storage systems (BESS) are now in effect as of January 1, 2026.
- •These policy changes will directly increase the procurement costs for BESS projects in the US for developers and large power consumers.
- •A potential slowdown in the EV market is anticipated to ease battery supply constraints, which could offer a partial offset to the increased costs from tariffs and FEOC, providing a 'lifeline' for US energy storage deployment.
Topics
policystorage