The Shift Toward U.S.-Based Solar Battery Manufacturing

For years, most of the batteries powering everything from cars to rooftop solar systems were built overseas. That picture is starting to change. Across the country, new factories are breaking ground, billions of dollars are being invested, and the U.S. is rapidly building its own battery supply chain.

In just the past three years, more than 380 clean energy manufacturing projects have been announced nationwide, and investment has surged from about $2.5 billion in late 2022 to more than $14 billion in early 2025. Federal incentives, private capital, and state clean energy targets are fueling this boom, and the battery industry is at the center of it.

For homeowners, this shift means more than just an industry headline. Domestic manufacturing is expected to make high-quality batteries easier to get, cut down on long shipping delays, and deliver products designed for American homes and energy patterns. At the same time, it's creating a stronger foundation for clean energy across the country.

Where Batteries Are Being Built

The scale of investment in U.S. battery manufacturing is hard to miss. This wave of development has created regional hubs in states like Nevada, Georgia, Arizona, Texas, and across the Midwest. According to the National Renewable Energy Laboratory, the U.S. now has over 700 companies and 850 facilities in the lithium-ion battery supply chain, and the number continues to grow.

Some of the most recognizable names in residential solar and storage are part of this shift. Enphase, for example, has opened facilities in South Carolina and Texas. The Texas plant alone can produce about 65 megawatt-hours of home batteries each quarter, or more than 50,000 Enphase IQ Batteries each year. That’s alongside microinverter production, enough to support more than a million solar homes annually. By moving production closer to demand, Enphase is cutting out ocean freight and making it easier to serve customers in markets like California.

FranklinWH is taking a comprehensive approach to domestic manufacturing. The company explains, "Our long-term vision is to be a U.S. manufacturer, with a U.S. bill of materials. That's the only way to build resilience and be a true long-term partner for the American market." They're actively planning full manufacturing capacity onshore, starting with developing a local supply chain. For FranklinWH, this strategy goes beyond compliance or tariffs; it's about being closer to customers and delivering energy storage that's made in America for America.

It’s not just Enphase and FranklinWH making these moves. Other major players are also expanding U.S. battery production. Tesla, for instance, has expanded its Nevada Gigafactory and added a Megapack factory in California. GM and LG Energy Solution are building Ultium cell plants in Ohio and Michigan, while Ford is setting up new factories in Kentucky and Tennessee. Panasonic, Toyota, and Samsung SDI have all announced major projects as well. It’s a clear sign that U.S. battery production is picking up speed and attracting attention from some of the biggest players in the industry.

When industry leaders like these invest in American production rather than simply importing products, it signals a fundamental market shift.

What's Driving the Manufacturing Shift

Several powerful forces are driving companies to establish stateside battery production.

Federal Incentives: The government is providing substantial support, offering $35 for every kilowatt-hour (kWh) of capacity for U.S.-manufactured battery cells and $10/kWh for battery modules. These incentives make domestic production more economically attractive for manufacturers.

Supply Chain Security: Years of overseas shipping delays and pandemic-related shortages have highlighted the risks of relying solely on international supply chains. Companies are prioritizing reliability and consistency by bringing production closer to their markets.

Shared Infrastructure with EVs: The growing electric vehicle market shares many of the same battery technologies used in home energy storage, creating economies of scale that benefit both industries.

Economic Impact: These manufacturing investments are creating thousands of local jobs across the country, strengthening regional economies while building essential infrastructure for America's clean energy future.

Climate Goals: States like California have set ambitious targets, including a 100% zero-carbon energy planning goal by 2045. Meeting these objectives requires reliable, large-scale renewable energy storage manufacturing capabilities.

Why Domestic Production Matters 

When battery factories move closer to where people actually use the technology, the benefits ripple outward. It means supply chains are easier to manage, products can be updated faster, and the energy system itself becomes more reliable. It also keeps more of the economic value in American communities instead of sending it overseas.

Reduced Supply Chain Risks: Shorter supply chains mean fewer potential delays and disruptions, helping keep solar and storage projects on schedule.

Faster Innovation: When research and development teams work closely with manufacturing facilities, improvements and new features can be implemented more quickly.

Grid Reliability: Increased domestic battery production means more storage capacity available to support grid stability during peak demand periods and outages.

Local Economies: Supporting domestic battery manufacturing helps strengthen local economies and reduces dependence on international supply chains.

Enphase has already seen the difference. After shifting part of its production to Texas, the company noted, “We have a lot less pressure around ocean freight shipping since the products are produced in the U.S. and can simply move by truck.” That kind of change may seem small, but it adds up to more predictable delivery, steadier supply, and ultimately a smoother experience for both installers and homeowners.

Challenges to Watch Out For

The momentum behind U.S. battery manufacturing is strong, but it isn’t without hurdles. Rising tariffs are increasing costs for some imported materials, and manufacturers are still working to shift key parts of the supply chain. These changes take time, and in the short term they may affect pricing and availability.

Policy is another factor to keep an eye on. Energy incentives and trade rules can evolve quickly, and companies are adjusting their strategies to stay compliant while keeping costs competitive. 

However, the industry is adapting effectively. FranklinWH sees these challenges as temporary, explaining that their commitment to U.S. sourcing and manufacturing is “about future-proofing both our company and our customers.” Their view is, “the more we build here at home, the less anyone has to worry about tariff swings.”

The momentum behind clean energy technology manufacturing appears strong enough to navigate temporary policy adjustments as the industry matures.

What It Means for California Homeowners

For California homeowners, the growth of U.S.-based battery manufacturing is more than an industry trend. It will directly influence how quickly you can access batteries, how reliably they perform, and how well they fit into the state’s energy landscape.

In the long term, more factories here mean more options and a steadier supply. Shorter shipping routes and a stronger domestic supply chain reduce the risk of delays and help ensure products are available when you need them. At the same time, more competition in the market can drive improvements in both quality and cost.

In the short term, pricing may fluctuate as manufacturers adapt to tariffs and adjust sourcing for key materials. But even with those variables, batteries remain one of the most valuable additions to a California solar system. They keep the lights on during outages, help avoid expensive peak electricity rates, and make it easier to get the most out of solar under today’s net metering rules.

The Road Ahead

The growth of US battery manufacturing is still in its early stages, but the direction is clear. More companies are building here, more states are competing for clean energy investment, and more factories are coming online to meet rising demand. All of this adds up to more options and better reliability for families considering energy storage.

Companies aren't investing billions in U.S. factories just to feel good about themselves. They see that renewable energy storage is becoming essential for homes across America, and they want to be ready to serve that growing demand with products made here.

For California families, this means solar batteries will become more available, more reliable, and better designed for specific energy needs. There's no need to rush into decisions, but it's definitely worth understanding how these changes could benefit your home.

Want to Explore Battery Options?

At Citadel, we stay on top of developments in domestic battery manufacturing so you don't have to. Whether you're ready to add a battery today or just exploring possibilities for the future, our team can guide you through every step, from choosing the right system to installation and ongoing support. Let's talk about what makes sense for your home.