1. The global average price of BESS for US deployment has been declining since 2022, with Tier 2 providers like EVE, REPT, and Hithium aggressively capturing market share from CATL.
2. Some companies are offering BESS units for as low as US$110 per KWh, with new players from China entering the market due to domestic competition and oversupply.
3. Political pressure, diversification of supply chains, and potential trade rules are influencing the growth and dynamics of the BESS market, with the US applying a 10.89% tariff to BESS imports from China.
The global average price of battery energy storage systems (BESS) for US deployment has been decreasing since 2022, with Tier 2 providers such as EVE, REPT, and Hithium aggressively capturing market share behind CATL, the world’s largest lithium-ion battery cell manufacturer. Some companies are offering BESS units for as low as US$110 per KWh. New players from China, such as Hyperstrong, have emerged on the global scene due to fierce domestic competition and oversupply.
However, concerns over political pressure have arisen, with developer Available Power’s president Ben Gregory suggesting that projects may see their BESS equipment from China removed due to political reasons. CATL denied accusations of political pressure, but Duke removed the units under pressure from the US Congress in February 2024. The falling price of BESS is benefitting downstream deployments and M&A activity.
The US market size and potential trade restrictions are leading to aggressive moves by companies to establish a foothold in the US and abroad. CEA highlights that the US could potentially apply additional tariffs on BESS from China, making US-made BESS cost-competitive. The US already applies a 10.89% Section 301 tariff on BESS from China, and could implement further duties under separate protocols, similar to what is done for solar PV modules.