Sunrise New Energy's 1GW U.S. Lithium Battery Project: A Catalyst for Anode Material Demand and Supply Chain Investment Opportunities

The U.S. energy transition is accelerating, driven by policy tailwinds, surging demand for clean energy, and a reimagined battery supply chain. At the forefront of this transformation is Sunrise New Energy, a Chinese lithium battery materials firm that has recently announced a 1GW lithium battery pack project in the United States through its U.S. subsidiary, Alchemistica Incorporated. This initiative, while ambitious, is not merely a geographic expansion—it represents a strategic alignment with the U.S. energy storage boom and the Inflation Reduction Act (IRA)-fueled push for domestic supply chain resilience.

The U.S. Energy Storage Boom: A $150 Billion Opportunity

The U.S. energy storage market is on a meteoric trajectory. According to a report by the Clean Energy Investment Monitor, total installed energy storage capacity is projected to surpass 15 gigawatts (GW) in 2025 and reach 82 GW by 2029U.S. energy storage market sees record growth in Q1 2025^[3]. This growth is fueled by state-level mandates, such as New York's 6 GW target by 2030 and Massachusetts' 5 GW goal2025 Battery Storage Trends: Market Growth, Safety Innovations, …^[4], as well as the need to stabilize grids increasingly reliant on intermittent renewables. Meanwhile, U.S. electricity demand is expected to rise by 25% by 2030 and 78% by 2050, driven by electrification of transportation, buildings, and data centersUnited States Anode Active Material Market Research Report 2025 – 2032^[1].

Sunrise's 1GW project directly targets this demand, focusing on residential and commercial-industrial (C&I) applications. By localizing battery pack production in the U.S., the company aims to reduce lead times, cut costs, and capitalize on IRA incentives. This move mirrors broader industry trends: firms like Lyten are already producing lithium-metal foils domestically, while Orbia and Eos Energy are scaling energy storage systemsThe IRA and the US Battery Supply Chain: One Year On^[2].

Anode Material Demand: A $3.12 Billion Market by 2032

The heart of Sunrise's strategy lies in its upstream anode material business. Graphite anodes currently dominate the U.S. market, accounting for 72% of demand in 2024, but the sector is poised for explosive growth. A 2025 market research report projects the U.S. anode active material market to expand at a 9.6% compound annual growth rate (CAGR), reaching $3.12 billion by 2032The IRA and the US Battery Supply Chain: One Year On^[2]. This growth is driven by electric vehicle (EV) adoption and grid-scale storage needs.

The IRA has been a game-changer. By offering tax credits for domestic production and imposing tariffs on imported materials, the legislation has spurred over $7 billion in battery supply chain investmentsThe IRA and the US Battery Supply Chain: One Year On^[2]. For instance, the U.S. automotive industry's target of 50% EV sales by 2030 will require 250,000 metric tons of anode materials annually—a 3.5x increase from 2024 levelsThe IRA and the US Battery Supply Chain: One Year On^[2]. Sunrise's U.S. battery pack project is designed to amplify its anode sales, creating a flywheel effect: higher pack production drives demand for its graphite anodes, which in turn strengthens its position in the North American supply chain.

Supply Chain Integration: A Strategic Edge

Sunrise's project exemplifies the IRA's emphasis on vertical integration. By establishing localized pack production, the company can tighten synergies between its upstream anode business and downstream applications. This approach mirrors Lyten's strategy of building a fully U.S.-made anode supply chainUnited States Anode Active Material Market Research Report 2025 – 2032^[1], which reduces reliance on foreign materials and mitigates geopolitical risks.

However, challenges persist. Sunrise's financials raise red flags: negative profitability margins, a distressed Altman Z-Score, and a high debt-to-equity ratioSunrise New Energy (EPOW) to Develop 1GW Lithium Battery Plant in the US^[5] could hinder its ability to fund the project. Additionally, the company has not disclosed the project's location, timeline, or investment costsSunrise New Energy (EPOW) to Develop 1GW Lithium Battery Plant in the US^[5], leaving investors with unanswered questions.

IRA-Driven Opportunities and Risks

The IRA's Advanced Manufacturing Production Tax Credit (AMPTC) is a critical enabler for Sunrise's project. By incentivizing domestic production, the law reduces the cost gap between U.S. and Chinese manufacturing. Sunrise's existing Chinese facilities, which already use renewable energy to lower costs and environmental impactUnited States Anode Active Material Market Research Report 2025 – 2032^[1], could further benefit from cross-border synergies.

Yet, the U.S. battery materials pipeline is not without turbulence. Policy uncertainty under the Trump administration, coupled with supply chain bottlenecks and volatile demand, has led to project delays and cancellationsThe IRA and the US Battery Supply Chain: One Year On^[2]. Sunrise's success will depend on its ability to navigate these headwinds while leveraging IRA incentives.

Conclusion: A High-Stakes Bet on the Energy Transition

Sunrise New Energy's 1GW U.S. lithium battery project is a bold bet on the energy transition. While the company's financial health and operational transparency remain concerns, the project aligns with a $150 billion energy storage market and a $3.12 billion anode material growth trajectory. For investors, the key question is whether Sunrise can execute its vision while capitalizing on IRA-driven tailwinds. If successful, the project could cement the company's role in a resilient, self-sufficient U.S. battery supply chain—and deliver outsized returns for those who bet early.