The key supplier for several major battery projects in Australia, including the Waratah Super Battery, has gone bankrupt amid challenging business conditions in the renewable sector.
Powin, a battery energy storage system company in Oregon, has filed for Chapter 11 bankruptcy at a court in New Jersey, the United States.
The company specialises in designing, developing, and deploying utility-scale energy storage solutions that support grid stability and facilitate renewable energy integration.
It is the main supplier to Akaysha Energy’s 850 megawatts/1,680 megawatt-hours Waratah Super Battery in New South Wales, the largest battery project in Australia and one of the largest in the world.
When operational, the project is expected to have an active capacity of at least 700 megawatts and guaranteed usable storage capacity of at least 1,400 megawatt-hours, sufficient to support hundreds of thousands of households.
Waratah’s construction began in May 2023 and was completed in October 2024. The project is currently going through testing and commissioning and will commence operation later in 2025.
Apart from Waratah, Powin also works with Akaysha Energy to develop the Ulinda Park battery project in Queensland.
Akaysha Energy’s Response
Akaysha stated that it was aware of Powin’s financial difficulties several weeks ago and had backup plans.“Akaysha has a contingency plan in place in order to deliver minimal disruption and sustained project momentum,” a spokesperson told The Epoch Times.
“Both Waratah Super Battery and Ulinda Park are well advanced, with 100 percent of Powin battery packs installed and commissioning activities progressing.
“Waratah Super Battery currently has approximately 240 megawatts available and is progressing through hold-point testing.”
The company also noted that it had mobilised its own workforce to mitigate the risks and ensure the seamless delivery of the projects.
“Our priority remains the uninterrupted and successful progression of these projects through to operations,” the spokesperson said.
Why Powin Went Bankrupt
According to court documents (pdf), Powin has up to 5,000 creditors and owes more than US$300 million (A$462 million) in unsecured claims to its top 50 creditors.Its largest creditor is Ace Engineering, a South Korean firm. Powin also owes significant amounts to battery and renewable energy companies in China.
To advance its bankruptcy proceedings, Powin has appointed a new CEO and engaged the law firm Dentons US to represent the company and assist with its legal obligations.
According to Energy Storage News, before filing for bankruptcy, Powin submitted a notice to Oregon authorities warning that it might have to lay off workers by July 2025 if the company’s financial situation did not improve in the coming period.
In a statement, Powin said it was facing significant difficulties in the renewable energy sector, particularly after the Trump administration’s increased tariffs on China.
“Powin is navigating a period of significant financial challenge, reflective of ongoing headwinds in the broader energy storage industry,” the statement read.
“These challenges have been compounded by recent tariff developments that have added cost and complexity to the company’s operations and ongoing uncertainty surrounding the Investment Tax Credit (ITC).”
In the scenario that the United States implements an aggressive tariff policy against China through 2030, the cost of battery storage is forecast to increase by around 45 percent.
