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Starting January 1, 2026, tariffs on Chinese batteries will rise from approximately 37.5% to 55%, prompting US battery manufacturers to shift production towards battery energy storage systems (BESS) amid a slowdown in electric vehicle adoption. Companies like LG Energy Solution and Samsung SDI are increasing domestic manufacturing and forming partnerships, which may lead to a surplus of battery cell capacity by late 2026. Despite challenges such as immigration raids affecting skilled labor, the trend indicates a movement towards US-based supply chains for energy storage solutions.