CATL(SZ:300750) Zheng Quan Shi Bao Wang·2025-07-16 09:51Core Points - The "Great and Beautiful" Act signed by President Trump has led to the cancellation of several clean energy tax incentives, casting a shadow over the future of the U.S. renewable energy industry and its domestic supply chain [1] - The act terminates the clean energy tax credits, including the solar and wind energy tax credits, which will be phased out by the end of 2027, and the electric vehicle tax credit, which will end by September 30, 2025 [1][2] - The act imposes stricter restrictions on "restricted foreign entities," specifically targeting Chinese companies, which may hinder their ability to participate in the U.S. market [2][3] Impact on Electric Vehicle Market - The termination of the electric vehicle tax credit will increase the purchase cost of electric vehicles in the U.S., significantly weakening the incentives that previously supported the market [2] - Major U.S. automakers, particularly Tesla and Ford, are expected to face a decline in sales due to the early termination of these incentives [2] - The act's restrictions may also affect Chinese battery suppliers and their upstream suppliers in the U.S. market, leading to decreased battery procurement and sales [2][3] Supply Chain and Market Dynamics - The act may cause U.S. and foreign companies to avoid sourcing from Chinese suppliers due to concerns over tax credit eligibility, resulting in a competitive disadvantage for Chinese firms [3] - A Wood Mackenzie report indicates that the U.S. utility-scale storage market could shrink by 29% by 2026 due to policy uncertainties, with a potential 16 GW reduction in expected new grid-scale storage installations over the next five years [3] - The changes in tax measures are projected to increase the burden on the clean energy industry by $4 billion to $7 billion [3] Company-Specific Effects - Powin, the third-largest battery supplier in the U.S., has submitted a notice to local and state officials indicating a potential cessation of operations, citing insufficient business conditions [4] - ESS, Inc. has announced plans to close its Oregon facility due to a lack of funding, which may also impact Chinese energy storage companies involved with U.S. clients [4] - Xiamen Haicheng Energy Storage may face risks as two of its top five clients are U.S. companies, contributing approximately 2.97 billion yuan in revenue, accounting for about 23% of its total income [4] Global Energy Industry Implications - The "Great and Beautiful" Act is expected to reshape the energy development path in the U.S. and significantly impact the global energy industry landscape [5]