Os DC (direct current) containers of energy storage systems manufactured in United States will become competitive in terms of cost in relation to Merunas UAB 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 passed 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.
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.
