Private Equity Dominates US Battery Energy Storage Boom

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Private Equity Dominates US Battery Energy Storage Boom

US Energy Storage: A $15B Private Equity Playground

You know how they say money never sleeps? Well, private equity firms have been wide awake since 2022, pouring over $6.8 billion into US battery storage projects. The market''s projected to hit $15.4 billion by 2027

BlackRock and Brookfield aren''t just dabbling

Permitting delays remain the Achilles'' heel. A typical 100MW project needs 23 approvals across federal, state and local levels. The DOE''s FAST-41 program cut processing time from 4.2 years to 2.8, but that''s still longer than most PE hold periods.

Supply chain risks loom too. While 87% of US storage projects use Chinese LFP cells, the UFLPA customs crackdown blocked $420 million worth of components in Q1 2024. Smart players are pivoting to South Korean suppliers and domestic assembly plants.

So where''s this headed? The IRA''s domestic content bonus (10% tax credit boost) will likely push more private equity battery storage investments into US manufacturing. We''re already seeing it - FREYR''s Georgia factory secured $850 million from KKR and Apollo this March.

But here''s the kicker: battery chemistry matters more than ever. While most funds bet on lithium-ion, Form Energy''s iron-air technology just landed $240 million from TPG. Could alternative chemistries disrupt the storage M&A landscape? That''s the billion-dollar question keeping PE analysts up at night.

About Private Equity Dominates US Battery Energy Storage Boom

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