<2025.2H> Global ESS Market Outlook (~2035)

Tariffs - a word that has become almost unbearable to hear in international trade over the past few months.

Trump, back in the U.S. presidential office, has chosen tariffs as the key to international politics in his second administration. His message is clear: if you have complaints, produce goods in America and create jobs at home.

In addition, the Trump administration, together with the Republican-controlled Congress, has blocked all policies supporting the growth of the electric vehicle (EV) market. It terminated the planned EV purchase tax credits (subsidies) earlier than scheduled, nullified the ban on internal combustion engine vehicle sales enforced by 12 states led by California, and suspended federal support for highway EV charging station projects.

As a result, the Korean lithium-ion battery (LIB) industry, which had actively expanded its capacity under the Biden administration to capture the North American EV market through the IRA, has now found itself in a crisis.

In response, energy storage systems (ESS) are emerging as a promising alternative. ESS requires the second-largest amount of LIBs after EVs. Moreover, the tariff barriers imposed on Chinese-made LIBs are likely to raise their prices. On the other hand, thanks to the Advanced Manufacturing Production Credit (AMPC), which helps reduce LIB production costs within the U.S., battery manufacturers have begun shifting their focus toward the ESS market.

Then how will the ESS market in the United States grow? And how much will the ESS markets in other regions expand? This report provides an updated summary of the recent shifts and trends in these market conditions.

We hope that this report will be helpful to all members of the ESS industry who are going through a challenging time in many ways.