US-made BESS to become cost-competitive with China by 2025

Clean Energy Associates Report Provides Detailed Forecast for Battery Cells, DC Container and Lithium Prices
08-11-23-US-made-solar-canal-BESS to become cost-competitive with China by 2025
Rosamond Central 147 MW BESS, located in Kern County, California. Photo: Clearway Energy

Os DC (direct current) containers of energy storage systems manufactured in United States will become competitive in of cost in relation to China in 2025, thanks to incentives from IRA (Inflation Reduction Act). This is what the Clean Energy Associates.

The solar and storage technical consultancy firm revealed the forecast in its new quarterly report price forecast for BESS (Battery Energy Storage System) for the third quarter of 2023.

According to the study, a BESS (DC container with equipment necessary for energy storage) manufactured in the USA currently has an average price of US$256/kWh for delivery in 2024/25, while one manufactured in China for delivery in the US , in 2025, it costs US$218/kWh.

The CEA said that if certain subsidies for the production of clean energy technology in the US, provided for in the IRA, are ed directly to the customer, the price of the container could fall by 13%.

According to research, these are the 45X tax credit for battery cell production, which pays $35/kWh of production directly to the manufacturer, and the 30D tax credit for consumers purchasing EVs (electric vehicles).

“Realizing these subsidies as quickly as possible is essential for US-made battery cells to become competitive with those from China,” they highlighted.

The graph below presents the perspective of non-subsidized BESS and lithium carbonate prices.

Graphic: Clean Energy Associates.
Graphic: Clean Energy Associates

Too much data

Currently, US-made lithium iron phosphate (LFP) cells cost 30% more than those made in China, $123,9/kWh versus $78,7/kWh. However, according to the report, the Inflation Reduction Act's incentives could make U.S. lithium-ion batteries the lowest-cost option worldwide.

Graphic: Clean Energy Associates
Graphic: Clean Energy Associates
Photo by Mateus Badra
Mateus Badra
Journalist graduated from PUC-Campinas. He worked as a producer, reporter and presenter on TV Bandeirantes and Metro Jornal. He has been following the Brazilian electricity sector since 2020.

Leave a comment

Your email address will not be published. Required fields are marked with *

Comments should be respectful and contribute to a healthy debate. Offensive comments may be removed. The opinions expressed here are those of the authors and do not necessarily reflect the views of the author. Canal Solar.

News from Canal Solar in your Email

Posts

Receive the latest news

Subscribe to our weekly newsletter

<
<
Canal Solar
Privacy

This website uses cookies so that we can provide you with the best experience possible. Cookie information is stored in your browser and performs functions such as recognizing you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.