The United States has hit a major milestone in battery manufacturing. By the end of 2025, US factories reached 70 GWh of annual production capacity for grid storage. That’s now more than the country actually needs.
US battery factories now produce more than the country needs — a turning point for domestic energy manufacturing.
In 2025, the US installed around 28 GW and 57 GWh of battery storage. That’s a 29% jump from the year before. Utility-scale projects drove most of that growth, with nearly 50 GWh and 16 GW installed. California led all states with roughly 59,815 MWh added. Texas and Arizona followed with significant additions, and together those three states made up 74% of total capacity added.
Two major companies are leading the manufacturing push. Tesla runs a 40 GWh Megapack factory in Lathrop, California, and is reportedly planning a major expansion near Houston, Texas. LG Energy Solution is also expanding fast, with plans reportedly including roughly 50 GWh of North American manufacturing capacity in 2026, among them a new lithium iron phosphate, or LFP, plant in Michigan tied to a Tesla-linked deal.
For 2026, demand for energy storage systems is projected at 60 GWh. But total pending manufacturing capacity is estimated at substantially exceeding projected demand. Analysts also expect a surplus of compliant domestic capacity that meets FEOC-compliance rules, which relate to where battery materials come from.
Forecasts for 2026 vary. SEIA and Benchmark project 70 GWh in installations, while BloombergNEF sees 48 GWh. By 2030, SEIA expects annual installations to top 110 GWh. BloombergNEF’s estimate is lower at 80.6 GWh. The differences come down to assumptions about supply chains, incentives, and electricity demand growth.
Total US utility-scale storage could near 500 GWh by 2030. The total capital investment for 2026 alone is estimated at $25.2 billion. The broader battery supply chain has reportedly rivaled or surpassed the auto industry in driving US manufacturing investments. Industry commitments have reportedly reached an estimated $100 billion, with projections of more than 350,000 new jobs created. Roughly 48% of storage capacity deployed across the country is paired with solar generation, while 51% operates as standalone systems. Data center developers are also increasingly adopting batteries for reliability and backup, adding another layer of demand that analysts say will help sustain long-term storage growth.
References
- https://www.indexbox.io/blog/us-battery-storage-to-hit-70gwh-in-2026-report-projects/
- https://www.gurufocus.com/news/8642772/us-battery-market-seen-growing-21-as-installs-hit-70-gwh
- https://www.energy-storage.news/us-battery-manufacturing-will-surpass-100-of-demand-us-esc-report-states/
- https://www.solarpowerworldonline.com/2026/01/almost-overnight-the-us-became-an-oversupply-market-for-ess-battery-cells/
- https://www.canarymedia.com/articles/clean-energy-manufacturing/us-capacity-storage-cell-factories
- https://www.eia.gov/todayinenergy/detail.php?id=67205
