Main supplier to Australia’s most powerful big battery files for bankruptcy

The US based company that is the main supplier to Australia’s most powerful big battery has filed for Chapter 11 bankruptcy in New Jersey, reporting more than $US300 million in debt.

A bankruptcy petition filed on Tuesday (US time) says the company has between 1,000 and 5,000 creditors, assets valued at between $US100 million and $US500 million, and liabilities also estimated at between $US100 million to $US500 million.

A list of creditors holding the 50 largest unsecured claims is topped by South Korea-based container manufacturer Ace Engineering, with China-based battery cell manufacturer CATL in number three spot. Most of the companies owed money by Powin are based in either the US or China.

The Colorado-based company last month warned local authorities that it may have to completely shut down its business and lay off its employees by the end of July if its financial situation did not improve, as Renew Economy reported.

In a later statement sent to Energy-Storage.news, which broke the original story, Powin said a financial advisor had been appointed to help manage its business.

The statement also publicly confirmed that tariffs imposed by US President Donald Trump were compounding its problems.

“Powin is navigating a period of significant financial challenge, reflective of ongoing headwinds in the broader energy storage industry,” the statement read.

“These challenges have been compounded by recent tariff developments that have added cost and complexity to the company’s operations and ongoing uncertainty surrounding the Investment Tax Credit (ITC).”

The ITC is one of a number of key policy supports introduce by the Biden administration, and which Trump has vowed to scrap as part of his assault on renewable energy technologies.

According to court documents, a new CEO has been appointed – Brian Kane, formerly Powin’s chief projects officer – “to assist with management and operation of the company” following the resignation of Jeff Waters, who was CEO since August 2023.

Bloomberg Law reports that Powin has significantly reduced its workforce this year, with only about 17 per cent employees remaining compared to the beginning of the year. Its equity investors included Greenbelt Capital Partners, Trilantic, and Energy Impact Partners.

In Australia, Powin emerged on the big battery scene a couple of years ago as a new player with big plans, including as the supplier for Akaysha Energy’s 850 MW, 1680 MWh Waratah Super Battery in NSW.

It is also supplying Akaysha’s 150 MW and 300 MWh Ulinda Park battery that is under construction in Queensland.

The Waratah battery is contracted to deliver a unique service, acting as a kind of giant shock absorber at certain times that will allow transmission lines to transport more power into the major load centres in Sydney, Newcastle and Wollongong.

Commissioning of the huge project is running late, with the original target completion date of March this year shifted to late August, and most recently to the end of the year.

The batteries at Waratah and Ulinda Park have already been installed, but it’s unclear how Powin’s bankruptcy declaration will affect integration and maintenance going forward.

Last week, Akaysha told Renew Economy that it has been aware of the issues at Powin, and has put in contingency plans to manage the situation.

Akaysha had nothing further to add on the matter this week, but did offer a brief update on the two Waratah and Ulinda Park projects.

“Work on both projects continues to progress well, with Hold Point 3B testing commencing today at the Waratah Super Battery,” a spokesperson told Renew Economy on Wednesday.