A new report from the U.S. Energy Storage Coalition delivers a headline worth paying attention to: American factories now have the capacity to supply 100% of domestic energy storage projects with U.S.-built battery systems — for the first time in history.
The Energy Storage Powers American Manufacturing milestone report tracks progress against the industry’s 2025 commitment to invest $100 billion in American manufacturing and minerals production. The numbers tell a compelling story about what happens when demand signals meet industrial will.
What the Report Found
On the systems side, U.S. energy storage module and system manufacturing capacity now exceeds total annual domestic project demand — a milestone that would have seemed ambitious just a few years ago. The scale of the buildout is striking: from just 7.5 GWh of domestic manufacturing capacity in 2023 to 69 GWh by end of 2025 to a projected 164 GWh by 2027. That’s nearly 22x growth in four years. Major manufacturers including Fluence, Tesla, and LG Energy Solution are driving this expansion, with facilities operating across Utah, Tennessee, Arizona, Texas, and California.
On battery cells, the trajectory is equally impressive. Starting from essentially zero domestic capacity in 2024, American factories are on track to eclipse domestic project demand by end of 2026, with projected capacity reaching 96 GWh this year and 133 GWh by 2027. LG Energy Solution, Samsung SDI, and Tesla are all actively ramping U.S. production — with LG alone targeting around 50 GWh of North American ESS cell capacity this year.
The critical minerals supply chain is also maturing rapidly. Tesla’s lithium refining facility in Corpus Christi is expected to process enough lithium to support 30 GWh of battery production annually. ExxonMobil and Chevron are sourcing lithium from the Smackover Formation spanning Northeast Texas and Southwest Arkansas — APA’s own backyard. And ExxonMobil’s acquisition of Superior Graphite’s Kentucky graphitization facility is converting petroleum refining byproducts into advanced battery anode materials, building out domestic supply at every layer of the stack.
Why This Matters for APA Members
Energy storage isn’t a competitor to the generation resources APA members develop and operate — it’s an amplifier. The report puts it plainly: storage charges during periods of low-cost excess energy and returns that power when it’s needed most, making every resource on the grid — wind, solar, natural gas — perform more efficiently and deliver more value.
The economic case is equally clear. In 2024 alone, energy storage generated more than $1.4 billion in system cost savings for Texas. In SPP, the Coalition projects that deploying storage could cut future price spikes by 80–90%, saving $2–4 billion. A domestic manufacturing base that can deploy systems in 12–24 months is what makes those outcomes achievable at speed.
The broader manufacturing story also strengthens our advocacy position. Across our 11-state region, energy storage is generating jobs in fabrication, power electronics, critical minerals extraction, and advanced manufacturing — including at facilities in Texas, Tennessee, Arkansas, and Georgia. That’s a message that resonates in every statehouse we operate in.
Learn More
The full report is available at EnergyStorage.org. The Coalition’s one-pager summary can be found here. APA members with questions about energy storage policy developments in our region are encouraged to reach out to our team directly.