Duke Energy (NYSE:DUK) will permanently shut down energy storage batteries produced by Chinese battery maker CATL at Marine Corps base Camp Lejeune and phase out CATL products at its civilian projects, Reuters reported Friday.
“We have made the decision to decommission the CATL battery energy storage system at Camp Lejeune and replace it with a domestic or allied nation supplier,” Duke Energy (DUK) said, adding it is “voluntarily moving away from specifying CATL battery energy storage technologies” by 2027.
The decision comes as U.S. officials have warned that hackers linked to China’s government are targeting network-linked critical U.S. infrastructure, including the power grid.
Duke Energy’s (DUK) move could have supply chain implications for the utility and have a chilling effect on an energy storage market dominated by Chinese manufacturers, according to Reuters.
Reuters reported in December that Duke Energy (DUK) had temporarily disconnected industrial-scale CATL storage batteries from a project at Camp Lejeune after lawmakers raised concerns about the battery supplier’s close links to China’s Communist Party.