Powin Confronts Major Financial Struggles Amid Broader Industry Challenges, Company Confirms

US-based energy storage system integrator Powin is undergoing a serious financial downturn, prompting the company to appoint a financial advisor to guide it through what it describes as a "period of significant financial challenge."

As first reported by Energy-Storage.news, Powin recently submitted a notice to authorities in Oregon—where it is incorporated and has the majority of its operations—stating that it may be forced to lay off its workforce by July 28, unless its business situation improves. In accordance with Oregon law, companies with more than 100 employees must provide at least 60 days' notice for potential mass layoffs, which explains the specified timeline.

Although Powin did not answer direct questions, it issued an official statement acknowledging its difficulties.

“Powin is navigating a period of significant financial challenge, reflective of ongoing headwinds in the broader energy storage industry,” the company said.

The statement cited recent tariff adjustments and uncertainties surrounding the Investment Tax Credit (ITC) as key factors exacerbating its operational costs and strategic challenges.

Tariffs and Tax Incentive Concerns

Market research firm Clean Energy Associates (CEA) noted that inconsistent application and pauses in US trade tariffs have caused sharp fluctuations in the cost of importing batteries, particularly from China. Despite a current 90-day suspension on the steepest tariffs, total import duties from China still exceed 40%, with projections suggesting they could spike to 82% or even 150% in 2025 depending on political outcomes.

Meanwhile, analysts at Wood Mackenzie Power & Renewables emphasized that the energy storage sector is disproportionately affected by these trade measures compared to wind or solar industries, largely due to its high dependence on Chinese battery imports.

Powin manufactures its battery energy storage systems (BESS) for North America at a facility in Florida and through contract manufacturers Jabil and Celestica in Mexico. However, it sources most of its battery cells from Chinese suppliers.

A factory in Taiwan supports its international projects, such as the Waratah Super Battery in New South Wales, Australia. Being privately held, Powin does not publicly disclose the percentage of revenue from outside the US.

The company's financial challenges are further complicated by the potential removal of the ITC under the US budget reconciliation bill, which is currently being debated in the Senate. If repealed, customers could lose tax credits covering 30% to 40% of a project’s capital expenditure—posing a significant setback for energy storage adoption.

Market Conditions and Leadership Actions

It remains unclear whether Powin's current crisis is rooted more in external policy shifts or internal competitiveness in an increasingly saturated energy storage market. However, experts and industry insiders confirm that the entire US storage sector is facing considerable volatility and uncertainty.

To address immediate concerns, Powin's senior lender—reportedly KKR, a major US investment firm—has appointed Jerry Uzzi of financial advisory firm Uzzi & Lall to act as an independent manager. His mandate includes overseeing urgent cost-reduction measures and exploring strategic alternatives for the company.

“As part of this process, Powin has initiated WARN Act notifications for a portion of its workforce while continuing essential operations,” the statement read.

Despite the phrasing, the WARN notice reportedly includes a list of 250 positions potentially affected—ranging from general staff to C-suite executives.

“Although the company’s future remains uncertain, leadership remains focused on identifying a viable path forward and will continue to keep stakeholders informed as developments occur,” Powin concluded.