Where Does Your Solar Battery Really Come From?

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• Introduction
• The big picture
• North America is changing quickly
• The part most people miss: "North American battery"
• Conclusion

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Introduction

We sell a lot of batteries, so we already know that much of today’s battery technology and manufacturing comes from China. But how much? And perhaps more importantly, where do the materials and components actually come from before that battery ever reaches us?

When I first got into solar, the batteries I was selling were very different from what we use today. Most were manufactured in Canada or the United States and were lead-acid batteries—first flooded, then sealed, and eventually lead-carbon. We knew what we were dealing with, and the supply chain was relatively straightforward.

Today, that has changed dramatically.

The vast majority of the batteries we work with are now LFP—Lithium Iron Phosphate. They are lighter, have much longer cycle life, require far less maintenance, and have become the dominant chemistry for many modern energy-storage systems.

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The big picture

The world's battery-storage supply chain is still overwhelmingly centered in China.

In 2025:

• Global lithium-ion cell manufacturing capacity exceeded 4 TWh/year.
• China accounted for more than 80% of global lithium-ion cell manufacturing capacity.
• The U.S. and EU were each around 6–7% of global capacity.
• Chinese, Korean and Japanese companies together dominate the actual cell industry.

And for stationary energy storage specifically, the dependence on China is even more pronounced because the overwhelming majority of today's storage uses LFP (LiFePO₄).

The IEA estimates that about 90% of new battery-storage deployments in 2025 used LFP, and says LFP batteries are almost exclusively supplied from China.

Even more striking: the IEA estimates that over 98% of LFP cathode material and LFP battery cells were produced in China in its latest detailed supply-chain assessment.

Where the cells are actually being made

A simplified picture looks like this:

RegionPosition in global cell manufacturing🇨🇳 China>80% of global Li-ion cell production/capacity🇺🇸 United StatesRoughly 6–7% of global capacity, growing rapidly🇪🇺 European UnionRoughly 6–7%🇰🇷 South KoreaMajor cell technology/manufacturing base🇯🇵 JapanMajor established cell manufacturer🇨🇦 CanadaEssentially no large-scale cell production currently

The Canadian situation is particularly interesting.

Natural Resources Canada says that, despite numerous companies working on battery technology, Canada currently has no large-scale cell production, with several proposed projects delayed, cancelled or put at risk.

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North America is changing quickly

The U.S. is building a substantial domestic cell industry.

As of Q1 2025, one industry assessment counted approximately 202 GWh/year of operating U.S. cell manufacturing capacity, with another 202 GWh of capacity expected to come online.

But here's the catch:

A lot of that capacity is EV-oriented and owned/operated with Korean or Japanese technology and companies.

So:

Made in America ≠ American battery supply chain.

The cell may physically be manufactured in Michigan, Tennessee, Georgia, etc., while the company, intellectual property, equipment, cathode material, anode material, lithium processing and other components originate elsewhere.

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The part most people miss: "North American battery"

Let's take a typical 48/51.2V LFP battery you might buy.

There are several layers:

Lithium → processed chemicals → cathode material → cell → module → BMS → battery pack → enclosure → finished ESS

A company could legitimately say:

"Our batteries are manufactured in North America."

while the actual situation could be:

Chinese materials → Chinese cell → North American battery assembly → North American BMS/enclosure

That's not necessarily bad. But it is not the same thing as a North American cell.

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Conclusion

The answer isn't as simple as looking at the label on the side of the battery.

A battery can be assembled in North America while the cells, cathode material, anode material and other critical components come from somewhere else. And that's not necessarily a bad thing. It's simply important to understand what we're actually talking about when we say a battery is "North American made."

China currently dominates the global battery-cell supply chain, particularly when it comes to LFP, the chemistry used in much of today's stationary energy storage. At the same time, North American cell manufacturing is growing, and that is an important shift for the future of energy storage.

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