Battery manufacturing plants in the United States are rapidly shifting to data center batteries, while electric vehicles have not experienced the expected growth.

What is happening with American battery plants
At the beginning of 2020 President Joe Biden announced an ambitious plan for rapid electrification of the U.S. vehicle fleet. In response, new companies focused on producing traction batteries (car batteries) began opening across the country. However, the situation has changed: demand for electric vehicles has fallen, and with it the need for batteries.

How plans have shifted
- According to research firm CRU cited by *Financial Times*, American manufacturers have abandoned the launch of capacities that would serve 2 million EVs.

- The cut in subsidies for selling electric cars and the overall “cooling” of the market led to a drop in demand in the U.S.

- Of ten major battery plants, seven are ready to partially pivot to stationary energy storage systems (SSES).

Why SSES is needed
With the shift to renewable sources, energy is generated irregularly. To ensure a stable grid supply, a buffer storage is required – that’s what stationary batteries do. They are in demand not only in data centers but also in all sectors where backup power is needed.

- Ford has already pivoted to SSES in Kentucky.

- General Motors announced plans for a similar transition.

- Stellantis, backed by Samsung SDI, intends to shift battery production in Indiana toward stationary storage needs.

Thus, the three largest U.S. automakers are participating in this trend.

Current sales dynamics
Brand | Revenue from SSES (last quarter) | YoY growth | Revenue from EVs | YoY decline
Tesla | $12.8 million | +27 % | $64 million | –9 %

Electric vehicles make up only 8 % of the U.S. primary market. BloombergNEF forecasts that by 2030 their share worldwide will rise to 27 %, not the previous 48 %.

Financial details
- Stellantis invested $980 million in a joint venture with LG Energy Solution in Ontario.

- In exchange for 49 % of shares at $100, the company sold its stake to its partner after recently writing off €22 billion due to failed attempts to scale EV production.

Policy and tariffs
- Under Trump last year, subsidies for U.S. citizens buying electric cars were eliminated, but payments for batteries and SSES remained.

- Import duties on Chinese batteries reach 60 %. This makes domestic production profitable.

- Nevertheless, American manufacturers try to keep prices comparable to imports to avoid losing market share.

Who leads in LFP technology
China is the leading producer of LFP (lithium‑iron‑phosphate) batteries, which are especially suitable for stationary storage. In the U.S., South Korean companies dominate, specializing in other chemistries less suited to this task.

What the market expects by 2030
Wood Mackenzie analysts believe that the main growth in battery manufacturing capacity will still be driven by EV needs rather than SSES. Demand for stationary solutions in volume cannot compete with traction battery demand.

Conclusion: American battery plants are gradually shifting from producing traction batteries to stationary energy storage systems to match changing demand and political conditions. The technological leader in LFP batteries remains China, and SSES market growth is still limited compared to EV needs.