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The Solar Energy Industries Association (“SEIA”) issued a November, 2023 report titled:

“Energizing American Battery Storage Manufacturing” (“Report”)

SEIA describes the report as a comprehensive examination of both the challenges and opportunities faced by domestic energy storage production.

A particular focus is the impact of the Inflation Reduction Act (“IRA”).

The Report in noting the United States solar energy storage industry supply chain challenges identifies what it describes as “two important lessons”:

1. The United States will continue to face barriers in meeting its full solar energy storage potential in the absence of a robust domestic manufacturing base;
2. The United States’ over-reliance on imports is an economic and national security vulnerability.

Therefore, the Report contends that the United States must:

… significantly invest in domestic clean energy manufacturing including support for energy storage supply chains from raw material production to end use product manufacturing.

The IRA is stated to be strengthening the competitiveness of United States’ energy storage manufacturing. However, the report expresses concern about the ability of domestic production to meet demand by 2025. A key focus is the deployment of battery storage technology.

Consequently, the Report discusses:

1. Competition involving energy storage manufacturing.
2. Challenges United States must address to reduce reliance on battery imports.
3. Costs and availability of raw materials is the primary barrier to expanding energy storage manufacturing.
4. Incentives offererd by the IRA to produce electrode active materials, battery sales and battery modules which can reduce energy storage costs.

Components of the Report include:

1. Overview of battery manufacturing.
2. Growth and energy storage demand.
3. Domestic manufacturing capacity.
4. Cost competitiveness.
5. Access to raw and processed materials.
6. Timelines for new capacity additions.
7. Workforce development.
8. Diversity, equity, inclusion, and justice.
9. State economic development.

SEIA describes itself as the national trade association for the solar and solar+ storage industries, building a comprehensive vision for the solar+ decade through research, education and advocacy.

A copy of the Report can be downloaded here.