Trump Administration Declares Emergency, Bans Chinese Batteries in Grid Storage

The United States is trying to expand energy storage capacity quickly while reducing its reliance on Chinese battery technology, two goals that conflict in many respects. Data from the International Energy Agency show that about 80% of the world's battery cells are produced in China. China also controls about 85% of global production of cathode active materials for electric-vehicle batteries and more than 90% of global production of anode active materials, and refines most of the critical minerals needed to make these materials.

In late August 2026, the Trump administration declared a national emergency and banned the use of Chinese-made batteries in grid-scale energy storage systems, citing cybersecurity concerns. In the same month, the federal government provided USD 500 million to seven companies engaged in battery minerals, manufacturing and recycling, with the aim of building a domestic industry and reducing dependence on Chinese supply chains. An executive order signed on August 26, 2026 requires a ban on "any foreign-produced high-power electrical system equipment," wording that is broad in scope.

Under these measures, battery projects face near-term delays or cancellations, and developers are waiting for guidance, reconsidering existing contracts or changing suppliers. The Trump administration previously repealed legislation from the Biden era that supported domestic manufacturers and the electric-vehicle industry, which is the largest market globally for batteries of this kind. As a result, US battery manufacturers are under pressure in both time and funding.