The United States is on track for its biggest year ever in battery storage construction, with developers planning to add 24 gigawatts of utility-scale capacity to the grid in 2026. U.S. battery storage capacity has grown rapidly over the past five years, exceeding 40 gigawatts total. About 80 percent of planned 2026 battery additions are concentrated in three states: Texas at 53 percent, California at 14 percent, and Arizona at 13 percent. The battery energy storage industry is especially sensitive to these restrictions given the longstanding domination of the battery supply chain by now-restricted producers. FEOC-compliant battery storage projects retain access to investment tax credits through 2033, giving developers a substantial runway if they can secure qualifying supply chains.