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Industry experts at Intersolar and Energy Storage North America explained that cross-company cooperation, supportive policy, and smart site selection are key to expanding domestic battery production. The passage of the Inflation Reduction Act launched a national push to offshore clean energy manufacturing. But the recent change in government has made the sector cautious in the face of the volatile business environment. A group of solar and storage industry executives recently gathered at the Intersolar and Energy Storage North America conference in San Diego, California, to discuss the opportunities and challenges facing manufacturers today. The panel was moderated by Yogin Kothari, chief strategy officer for the Solar Energy Manufacturers for America (SEMA) coalition. The panelists noted that without the IRA, domestic production would not be as financially viable; the policy has provided a greater sense of certainty and stability in a volatile business environment. Companies that previously relied on overseas production have been able to expand within the United States. And the law has attracted international companies of all types and sizes. The factor that prompted us to go to the United States was the IRA, but on the sales side, explains Thomas Gösswein, CEO of BESS manufacturer Fenecon Inc. Gösswein heads the first international subsidiary of the German-based Fenecon International. All products have incentives, and you get those 30% price reductions. Selecting a location for a manufacturing plant also requires significant financial and logistical planning; some companies prioritize access to political incentives and government aid, while others opt for regions known for their industrial expertise. Gösswein explained that he chose Greenville, South Carolina, as the new headquarters for Fenecon Inc. because of its foundation-friendly environment. He wanted to make the companys launch as smooth as possible. The company took a simpler approach, leasing space and keeping the initial investment low to mitigate financial risk while expanding its battery production. Our product isnt rocket science, he says. Fenecon takes EV modules from OEMs, including battery management systems and other assets, and performs software and hardware engineering to create new storage systems. Its like putting together a sandwich or Lego bricks. But panelists expect trade policies and import restrictions to continue to influence manufacturing decisions. Although tariffs have made domestic manufacturing more attractive, companies continue to face challenges related to raw material costs and equipment sourcing. Heliene CEO Martin Pochtaruk noted that aluminum prices are rising both domestically and internationally, further complicating the decision to source materials domestically or internationally. There were divergent opinions on the best equipment procurement strategies. Although Chinese equipment is generally more cost-effective and technologically advanced than domestic materials, logistical issues give many companies pause. And domestically produced assets are viewed favorably from a political and marketing perspective. Warehousing companies are also increasingly recognizing the value of collaboration as the industry expands. The panelists emphasized that companies in the sector should work together rather than seeing each other as competitors. As political uncertainty remains a factor, stable regulatory support and workforce development will be essential to ensure long-term growth. Your network is everything, said Gösswein, who added that building a network of community members, policymakers, and other companies in the industry is crucial, as it fosters learning. Without the network, I wouldnt have had any opportunities. Go where you want to go and consider everyone important. You never know who youll need later. |
