Trump Administration Supporting U.S. Battery Storage
Battery storage in the United States has grown significantly in recent years. It accelerated under the Biden administration, in response to the introduction of the 2022 Inflation Reduction Act (IRA) and the subsequent growth in renewable energy capacity. Then, under President Trump, the industry continued to grow in line with government aims to strengthen the artificial intelligence (AI) and defense sectors.
Capacity Growth
Utility-scale battery storage capacity in the United States has grown at an average annual rate of 70% over the last three years, according to the U.S. Energy Information Administration (EIA). By the end of 2025, the United States had 43.6 gigawatts (GW) of operational battery storage capacity. Operators added another 8.3 GW in the first six months of 2026, bringing the total to 52 GW, based on the EIA’s Preliminary Monthly Electric Generator Inventory.
Operators are expected to add a further 54 GW of battery storage capacity over the next two and a half years, including 14 GW more in 2026, 26 GW in 2027 and 14 GW in 2028, according to their reporting to the EIA. Much of this will be concentrated in solar photovoltaic (PV) plants, and a significant amount will be used for data centers.
Globally, 108 GW of battery storage was added last year, marking a 40% growth increase from 2024, according to the International Energy Agency (IEA).
Government Support for Battery Growth
Despite President Trump’s repeated criticism of renewable energy sources and electric vehicles (EVs), he has shown strong support for battery storage. Under the Biden administration, the battery storage sector expanded rapidly as operators attempted to make wind and solar energy projects more reliable. However, under Trump, the use of battery storage has become more diversified.
The Trump administration views batteries as essential to achieving its national policies, including the rollout of data centers to help establish the United States as a global AI power and the manufacturing of drones for the military. In addition, Trump has spoken about his intention to counter China’s dominance in global lithium-ion battery supply chains. This has led him to support efforts to bolster domestic battery production.
Tom Moerenhout, who leads the critical minerals initiative at Columbia University’s Center on Global Energy Policy, explained, “There has been a growing appreciation for just how important batteries are for so many things… It’s not just E.V.s, it’s automation, robotics, data centers, drones for defense. And there’s a real move to making sure China doesn’t have a choke point here.”
Trump Administration Awards Billions to Batteries
In August, the Trump administration announced plans to invest over $2 billion in companies producing batteries and critical minerals, in line with its goal of establishing domestic production as a national priority. Trump said that the U.S. Department of Defense has agreed to $1.4 billion in lending to next-generation battery firm Sila Nanotechnologies and has signed deals with three other companies.
Sila was founded in 2011 by a former Tesla engineer. The firm aims to expand its production of silicon-based batteries, which deliver better performance, having raised over $1 billion in financing to develop its Washington state plant. The Biden administration had previously awarded the company a $100 million grant to support its production efforts.
Also in August, the U.S. Department of Energy (DoE) Office of Critical Minerals and Energy Innovation (CMEI) announced $500 million in investment in seven selected projects to expand critical mineral and material processing, battery manufacturing, and recycling capacity across the country.
U.S. Secretary of Energy Chris Wright stated, “For too long, America has depended on foreign actors for critical materials essential to modern life that underpin our economy, energy security, and national security… President Trump is reversing that dependence by securing our critical supply chains, unleashing American industry, and bringing critical materials production and processing back to the United States.”
Meanwhile, Assistant Secretary of Energy Audrey Robertson stressed, “These projects underscore DOE’s commitment to driving innovation, reducing reliance on foreign sources, and promoting American energy dominance.”
The DoE also agreed to provide a $490 million loan to a subsidiary of Pattern Energy for battery storage development in Puerto Rico, in a bid to strengthen the territory’s fragile electric grid. This will support the development of two battery storage systems totaling 220 MW in the coastal cities of Arecibo and Santa Isabel, which will provide backup electricity to over 100,000 customers during power shortages, such as those caused by natural disasters.
The U.S. battery industry is set to continue growing rapidly in the coming years, in line with data center growth and defense spending, as well as to support the expansion of the renewable energy and cleantech sectors. Investing in the development of U.S. battery manufacturing capacity could help reduce reliance on China, a trend further supported by the expansion of the U.S. critical minerals sector.
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