A new US order on foreign grid equipment puts battery projects first in line for delays, BloombergNEF says
The 26 August executive order restricts certain foreign-made batteries, transformers, inverters and related digital products from connecting to the US grid. BNEF expects delays and some cancellations for grid-scale storage; Morgan Lewis lawyers advise mapping affected assets and supply contracts.
A battery project in the US is a box of cells, an inverter and a transformer. The order signed in August touches all three.
Utility Dive reported on 1 September 2026 on a BloombergNEF note about the executive order that took effect on 26 August. The order seeks to stop certain foreign-made batteries, transformers, inverters and related digital products from connecting to the US grid, and lets the Energy Secretary set conditions on equipment already installed.
BNEF says battery storage faces more near-term risk than other sectors. Developers are likely to delay projects while they wait for guidance, seek new suppliers or redesign, and some projects made uneconomic will be cancelled. China accounts for 80% of global lithium-ion supply chain capacity, according to the IEA, and Chinese companies supplied about 40% of US inverter volumes in 2025, BNEF says. The order stacks on the Treasury foreign entity of concern rules finalised in February. Four US battery plants have come online so far this year.
Analogy: the kitchen has been told some of its pots cannot go on the stove any more. The menu is the same. The cooking just got slower and dearer.
Good: domestic supply is growing, and BNEF expects new US plants to soften the longer-term hit.
Bad: guidance is still to come. Battery buyers face waiting, redesign or higher prices in the meantime.
Ugly: equipment already installed is not fully safe. The Energy Secretary has discretion over its continued use and servicing. Ask your supplier in writing what happens if your system is covered.