The analysts of The US Department of Homeland Security shared an internal report with local agencies in August warning them of the economic risks of using Chinese batteries for utility storage. He warns that dependence on Chinese batteries could harm the development of a secure supply chain in the US.
Specifically, the report alleges that three companies—Contemporary Amperex Technology Co. Limited (CATL), Build Your Dreams (BYD) and Ruipu Energy Co. Ltd. (REPT) – have “taken advantage of various forms of government support and used this for additional business strategies to gain market share in the US.
CATL and BYD currently lead by far in the global energy storage battery market, with 40 percent and 12 percent market shares, respectively, according to South Korean energy research firm SNE Research. Eight of the top 10 companies in the industry are from China, so there are few alternatives to turn to when building networked storage.
The report said it built on previous documents that analyzed the use of anti-competitive tactics by China’s “state-backed firms in the electric vehicle and battery supply chains.” DHS did not respond to a request for additional comment.
In 2022 CATL struck a deal with Primergy Solar to build the largest U.S. solar power and storage project in Nevada, which went into effect this year. Its battery products have also been used by Duke Energy, a North Carolina-based utility company, although the latter dropped CATL as a supplier of electricity storage at the naval base after national security concerns were raised in part by lawmakers in Washington.
In an emailed statement, Fred Zhang, a spokesman for CATL, rejected the categorization that the firm relied on government support to gain an advantage. “CATL has achieved tremendous growth through continuous innovation, forward-thinking strategic planning and a commitment to high-quality products at a reasonable price,” the statement said.
Following efforts to limit the competitiveness of Chinese electric car companies, the US government is now also concerned about how local utilities could become too dependent on Chinese batteries for energy storage.
