Source: Christopherchico
The U.S. battery manufacturing base has overcapacity relative to domestic EV adoption rates. Producers are redirecting nearly a terawatt-hour of newly announced capacity toward stationary energy storage and grid applications instead. Automakers aren't buying batteries fast enough to justify the supply chain investments made during the 2020-2023 subsidy rush, so the industry is competing in a different market with different customers and margin profiles. The shift exposes which battery makers can operate profitably in lower-margin storage plays versus those dependent on automotive volume, while changing grid infrastructure investment patterns that will outlast any EV market correction.