Trump tariffs killing big battery investment in US
Wärtsilä, the Finnish company supplying Australia’s largest battery at Eraring (700 MW, 2,800 MWh), has warned that Trump-era tariff threats are stalling battery storage investment in the US.
The company says the US market is facing significant headwinds due to ongoing tariff uncertainty.
In a recent earnings call, Wärtsilä revealed a 79% drop in orders for the latest quarter, citing stagnation in the US market.
CEO Håkan Agnevall confirmed that global competitors are shifting focus to more active markets, increasing competition and putting pressure on margins.
Wärtsilä considers Australia one of its major growth markets outside the US, with projects including Torrens Island, Bungama, and Blind Creek.
The company noted that new entrants into the battery system integration market are further intensifying competition and reducing profitability.
Shortly after Wärtsilä’s call, the US imposed a 95% tariff on imported graphite, a key material for EV and grid-scale batteries.
Fluence, another top-five global battery supplier, has also blamed tariff uncertainty for paused contracts and a potential $US85 million drop in earnings.
As the US market contracts, global battery suppliers are shifting their focus to Australia, boosting investment and helping drive down costs for large-scale storage projects.