US battery energy storage prices spiking

The “Energy Storage Pricing Insights” report published by solar and energy storage pricing platform Anza Renewables for the second quarter has highlighted the sharpest spike in battery energy storage system (BESS) prices since 2021, when post-pandemic supply chain issues roiled the industry.

The price spikes occurred, according to the report, after “successive layers of United States tariffs landed within a 40‑day window and manufacturers reset quotes almost overnight.”

Despite falling prices, tariffs “eclipsed every cost tailwind this quarter,” and the Anza report found that, compared with January 2025 levels, delivered alternating-current (AC) system prices are 68% higher in the distributed generation market and 56% higher for utility scale. Direct-current (DC)‑only solutions climbed 68% and 69%, respectively.

The Donald Trump administration imposed a universal 10% tariff and a 145% total International Emergency Economic Powers Act (IEEPA) tariff rate on China but then, in mid-May, issued a 90-day pause, cutting the IEEPA tariff on Chinese goods to 30%. The IEEPA allows the president to regulate international commerce after declaring a national emergency in response to an extraordinary threat to the United States.

The May reprieve cuts the IEEPA China rate to 30% until August 12, with Section 301 tariffs, under the US Trade Act of 1974, remaining. The Anza report noted that suppliers continue to protect their margin through contract contingency clauses.

Tariffs are greatly affecting the battery energy storage market because it’s one of the remaining clean energy sectors that sources materials predominantly from China. Prices of materials and shipping are expected to rise.

The Anza report found that while spot lithium‑carbonate indices had fallen by early May, “the savings on cell cost could not offset the tariff shock, so delivered system prices still rose.” The tariff reprieve is also expected to increase shipping costs in Q3, 2025, Anza said, as industries hurry to get goods into the United States during the reprieve.

One thing that may not be affected is anode costs, according to the report. The International Trade Commission released a preliminary countervailing‑duty decision on Chinese active anode material on May 20, with a base duty of 6.55%. Anza says this may have minimal impact at the DC-block level for battery manufacturers but the company says further study is needed on the ongoing anti-dumping investigation and potential implications for affected original equipment manufacturers.

This report analyzed two common project sizes: a 40 MW distributed‑generation project and a 200 MW utility‑scale project, each configured for four hours of duration. AC system prices cover the battery block, power conversion system, and energy management system. DC systems cover the battery block only.

DG 40 MW, four-hour system, monthly trend

• AC prices added $115.70/kWh (+68%) from January to May.
• DC prices added $90.00/kWh (+68%) over the same period.

All prices come directly from manufacturers through the Anza platform and include the latest tariffs, shipping, and duties.

DG 40 MW, four-hour system, weekly trend (April 6, 2025-May 18, 2025)

The chart below smooths out the sharp, tariff‑driven jumps and offers that timely visibility that static price surveys miss, according to Anza.

• Weekly AC prices rose 49% from early April to a peak in late April, then slid 21% after the May 12 tariff reprieve.
• DC prices followed a steeper arc: 84% to the late‑April high, then a 33% decline.

Utility-scale 200 MW, four-hour system

Note that all figures are shown on a project capital expenditure basis for the United States, covering costs like materials, commissioning, and applicable tariffs. The data runs through May 19, 2025, and reflects the 90-day China tariff pause, effective beginning May 14, which temporarily lowers the rate on Chinese battery imports.

Anza expects price volatility to continue until the market has tariff certainty.

Anza, which was spun out of Borrego in 2023, offers a subscription-based data and analytics software platform for modules as well as energy storage. Its EnergyStorage Pro service offers on-demand, direct-from-supplier pricing, product, and supplier data; lifecycle cost; capacity maintenance; and comparison tools across more than 20 battery suppliers, including fully domestic and non-Chinese options.

From pv magazine USA.