Energy Storage News•about 1 month 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