US Executive Order Targets Foreign-Made Grid Batteries, Inverters and Transformers
On 26 August the US president declared a national emergency over foreign-made equipment in the bulk power system. Battery energy storage systems are on the list, but the order does not ban anything yet: the Department of Energy must first write the rules.
What the order says
According to the White House text, the order bars acquiring, importing, transferring or installing foreign-produced equipment when the Energy Secretary finds it comes from a "Covered Foreign Entity" and poses a serious risk of sabotage, unauthorised access or supply disruption. It applies to transactions begun after 26 August. The listed equipment includes transformers, grid-connected and utility-scale inverters, circuit breakers, metering and battery energy storage systems, plus related software and firmware.
It applies to transmission lines rated at 69 kV and above. Local distribution facilities are excluded. The Energy Secretary has 120 days to publish implementing rules, and can set up pre-qualification criteria or approve otherwise prohibited deals if risks are mitigated.
Not a blanket ban
ESS News headlined its report as a ban on Chinese-made storage. The legal analysis we read is more cautious. Law firm Steptoe describes the order as prospective and not a blanket ban on foreign-made equipment, with its reach depending on forthcoming Department of Energy guidance. It says covered entities include countries under a US arms embargo or those the Energy Secretary designates after consulting security agencies. ESS News quotes Shanghai Metals Market as saying a full exclusion of Chinese supply chains in the short term is unlikely.
We could not confirm from these sources which companies or countries will end up covered, because that list does not exist yet.
What it means for home batteries
Home batteries connect to local distribution networks, which the order excludes, so on the description in these sources they are outside its direct scope. The indirect effects are harder to judge. Utility-scale and home batteries often share cell makers and supply chains, and new restrictions on large systems could affect availability or prices, but none of the sources we read quantifies this.
This follows other recent US trade moves on solar, which we covered when new tariffs and minimum import prices were set for December. For UK readers, the order has no direct effect. It is one more sign that battery supply chains are being shaped by security policy as well as price.
Sources
- The White House: Declaring a National Emergency to Secure the United States Bulk-Power System
- Steptoe: Executive order on foreign bulk-power system equipment
- ESS News: US bans Chinese-made battery energy storage in new Trump directive
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