Trump bans Chinese batteries for grid storage, citing cybersecurity

September 12, 2026 at 01:00 AM1 min

This digest was compiled by AI from multiple sources — links to the originals are below.

The Trump administration declared a national emergency on August 26 barring Chinese-made batteries in grid-scale energy storage systems, citing cybersecurity concerns. The move comes as the U.S. awarded $500 million to seven companies to build domestic battery supply chains. Developers face near-term delays or cancellations as they await guidance on the vaguely worded order.

Key Facts

The August 26 executive order bars any foreign-produced bulk-power system electric equipment, effectively banning Chinese-made batteries in grid-scale storage.
China produces approximately 80 percent of all battery cells globally, according to the International Energy Agency.
The U.S. awarded $500 million in August to seven companies working on battery minerals, manufacturing, and recycling.
BloombergNEF analysis says battery projects face near-term delays or cancellations as developers await guidance on the order.

The Executive Order

The Trump administration declared a national emergency on August 26 that effectively bars the use of Chinese-made batteries in grid-scale energy storage systems. The order cites cybersecurity concerns as the rationale for the ban. Critics note the order is vaguely worded, calling for the ban of any foreign-produced bulk-power system electric equipment. BloombergNEF analysis indicates that battery projects face near-term delays or cancellations as developers await guidance, reconsider existing contracts, or shift suppliers.

Domestic Supply Chain Push

In the same month, the federal government awarded $500 million in funding to seven companies working on battery minerals, manufacturing, and recycling. The funding aims to build up the domestic sector and reduce reliance on Chinese supply chains. China controls 85 percent of global EV battery cathode active material production and more than 90 percent of anode active material production. Tu Le, founder of Sino Auto Insights, said building competitive supply chains takes decades and tens or hundreds of billions of dollars.