Battery Manufacturers NAICS 335910

Jan 29, 2026 - Data Centers Turning to Batteries for AI Power

• AI-hungry data centers are transforming the battery industry, turning batteries from sleepy backup gear into frontline power tools. As AI workloads send GPU power demand surging and swinging by the second, grids and diesel generators can’t react fast enough. That’s pushing data centers to lean on large battery systems to smooth out spikes, shave peaks, and keep operations stable. The catch: today’s lithium-ion batteries weren’t built for constant cycling, so frequent deep discharges are accelerating wear and forcing a rethink of battery design. Safer, longer-lasting chemistries like LFP are gaining ground, along with external battery installations to reduce fire risk. Smarter battery management software is also stepping in, using predictive analytics to stay ahead of demand. The result is a battery sector that’s suddenly central to powering the AI boom, not just backing it up.
• The Southeastern US has become a hotbed for EV and battery manufacturing with Georgia, North Carolina, and Tennessee among the top growth states in the sector. (Over $20 billion in projects and more than 16,000 jobs are planned for North Carolina alone.) But there’s growing concern that shifting federal policies under the Trump administration could slow the region’s momentum. Federal repeals of clean-energy tax credits and delays or freezes in programs like the National Electric Vehicle Infrastructure (NEVI) Formula Program, which supports building charging infrastructure, threaten demand and incentive structures for EV purchases nationwide. As a result, some battery plants in the region have been cancelled (such as the scrapped $1.4 billion Natron Energy plant in Kingsboro, NC) due to funding, capital constraints, or policy uncertainty. Industry leaders warn that without consistent incentives and policy support, the Southeast’s recent gains in battery and EV manufacturing might flatten out.

• With electric vehicle (EV) mandates being rescinded and demand for EVs falling, manufacturers who revved up battery production as a result have found themselves in search of different markets for their products. The large-scale battery storage industry - used by utilities, giant data storage centers, and wind and solar power providers - is quickly becoming the target for battery makers rather than carmakers. A rush of battery plant construction over the last five years in the American South and Midwest have left the properties underused or delayed altogether. Tesla’s revenue from battery storage systems grew a massive 67% last year to $4 billion. General Motors plans to supply new and used batteries to energy storage startups. These energy storage systems are designed to provide back-up power in case of emergency, a market that has tripled from 2021-24 and is expected to grow 35% in 2025, according to consulting firm Wood Mackenzie.
• The lithium-ion battery industry in the US is asking the federal government for policy and monetary support to build an American-made self-sufficient battery grid by 2030. Grid batteries are massive, large-scale energy storage systems that can be directly plugged into utilities. “Within five years, and with $100 billion in investment, we can satisfy 100% of U.S. demand for battery storage,” said Jason Grumet, CEO of the trade group American Clean Power Association. The 2022 Inflation Reduction Act offered tax incentives for domestic clean energy production, and the legislation helped the US close the gap with China, the world’s largest producer of lithium-ion batteries. The Trump administration, however, wants to eliminate those tax credits and its tariff policies are already hampering domestic battery production with manufacturers lowering forecasts and delaying clean energy projects. About 70% of US batteries needed for grid projects came from China last year.