<
https://reneweconomy.com.au/trump-tariffs-are-killing-big-battery-investment-in-us-but-it-means-lower-prices-for-australian-projects/>
"Another big battery supplier – this time the one building the biggest battery
project in Australia – has warned that President Donald Trump’s tariff threats
are effectively killing battery storage investments in US, but creating more
competition and lower prices in other markets such as Australia.
Finish group Wärtsilä is supplying the battery modules for the giant 700 MW,
2,800 MWh Eraring battery in NSW which, when complete, will be the biggest in
the country, adding to its growing portfolio of completed projects in Australia
that already includes the Torrens Island battery in South Australia.
Late last week the company – which also specialises in thermal generators and
marine engine systems – says the US market is facing significant headwinds due
to the uncertainty around tariffs.
“The growth continues in other markets, but the competition is increasing, and
putting pressure on profitability,” the company said in a statement, noting
that Australia is one of its major markets outside the US.
Later, in a conference call with analysts, the company said orders were down 79
per cent in the latest quarter because of the uncertainty.
“We have a challenge with the volumes at the moment, the US market is stagnant,
all competitors move to the more active markets and that, of course, increases
competition,” said CEO Hakan Agnevall.
“Order intake was down 79%. That is quite a lot. Of course, the U.S. tariffs,
the U.S. market is muted, competition increases in other markets. So our order
intake has really taken a fall, no doubt.”
The conference call with analysts was completed before the US slapped a new 95
per cent tariff on imports of graphite, a key ingredient in EV and grid
batteries.
Wärtsilä regards itself as one of the world’s top five battery storage
suppliers, along with the likes of Tesla, Fluence, Sungrow and GE Vernova.
The US-based Fluence has previously warned of a billion dollar shortfall in
orders this year as a result of the Trump tariff threats, and flagged that
earnings this year could drop to zero, from previous guidance of around $US85
million.
“The evolving trade and tariff landscape has created significant uncertainty in
the U.S. market, which has led us to agree with our customers during the second
quarter to pause certain contracts both under execution and those we expected
to sign until we have better visibility,” Fluence CEO Julian Nebreda said in
May.
The Trump tariffs have already been cited as the main cause for the collapse of
the Oregon-based Powin, which supplied the batteries to Akaysha’s 850 MW, 1680
MWh Waratah Super Battery in NSW, and the smaller Ulinda Park battery project
in Queensland."
Cheers,
*** Xanni ***
--
mailto:xanni@xanadu.net Andrew Pam
http://xanadu.com.au/ Chief Scientist, Xanadu
https://glasswings.com.au/ Partner, Glass Wings
https://sericyb.com.au/ Manager, Serious Cybernetics
