Five Reasons to Domestically Manufacture in Energy Storage: Capitalizing on the IRA

The Inflation Reduction Act (IRA) signals a pivotal moment for the U.S. energy storage industry. By moving manufacturing operations onshore, companies can tap into new financial incentives, stabilize their supply chains, and play a leading role in strengthening American energy independence. In an era defined by emerging technologies and shifting geopolitical pressures, domestic production helps secure our national interests and drives economic growth, job creation, and the building of a more resilient workforce. As energy independence builds America, growing these sectors ensures we remain at the forefront of global clean energy innovation.

1. Understanding the IRA

The IRA is designed to accelerate the American clean energy transition by incentivizing domestic manufacturing at every stage of the supply chain. Energy storage companies—whether producing battery cells, modules, or management systems—can tap into production tax credits, direct subsidies, and grants aimed at sparking U.S. innovation. By rooting your manufacturing facilities within the United States, you align with federal ambitions and ensure you’re well-positioned to access these benefits.

Key Insight:  The IRA offers a blueprint for sustainable development, and homegrown production aligns your business with policies that make the U.S. energy sector stronger, more self-reliant, and better prepared for the future.

2. Benefiting from Eligibility for Incentives

A core pillar of the IRA is its emphasis on domestic content. Sourcing and assembling components in the USA makes manufacturers eligible for various incentives designed to reduce capital expenses and operational costs. Companies that invest in U.S.-based production can qualify for advanced manufacturing production credits (Section 45X), tax credits tied to per-kilowatt-hour capacity, and financial support for building and upgrading facilities.

Key Insight: Tapping into federal incentives gives the financial stability needed to scale up, hire more talent, and stay ahead of the competition.

3. Reducing Costs and Operational Complexities

Global supply chains have many unpredictable variables, including tariffs, currency fluctuations, and shipping delays. By moving production closer to end-users and raw material sources, manufacturers can streamline operations, cut unnecessary logistics costs, and reduce financial vulnerabilities. Eliminating overseas shipping can significantly lower total product costs and stabilize pricing for customers, all while ensuring faster time to market and more reliable inventory management.

Key Insight: Localizing production helps to deliver quality solutions at a steady price, winning over customers who value consistency and dependable lead times.

4. Strengthening Supply Chain Resilience and National Security

A domestic supply chain is not only more predictable but also more secure. By manufacturing at home, firms limit their exposure to international disruptions, ranging from geopolitical tensions to unforeseen trade barriers. This resilience aligns with federal priorities focused on national security and critical infrastructure stability. Stricter environmental and labor standards on U.S. soil help ensure that operations remain compliant and ethically sound.

Key Insight: Manufacturing domestically strengthens the U.S. supply chain, boosts national security, and provides stability for companies and their customers.

5. Gaining a Competitive Edge Through Government Contracts and Market Leadership

Federal agencies, state governments, and private-sector entities increasingly favor domestically sourced products that align with the IRA’s vision. Establishing a manufacturing presence in the United States enhances the ability to secure government contracts, qualify for pilot projects, and influence emerging industry standards. This advantage extends beyond the public sector, as customers across various industries—electric utilities, automotive manufacturers, and commercial property developers—value the consistency, credibility, and long-term serviceability of U.S.-made energy storage solutions.

Key Insight: Producing onshore supports America’s clean energy mission, distinguishing you as a reliable, innovative leader in the market.

In Conclusion

By embracing domestic manufacturing, energy storage companies can take advantage of the IRA’s incentives, stabilize operations, and secure a long-term competitive edge. As the United States reshapes its energy landscape, firms that invest in onshore production are well-positioned to influence the future of the market.