Why Battery Energy Storage Is The Next Industrial Arms Race and How Manufacturers Can Prepare
July 9, 2025The energy transition is no longer a distant ambition, it’s here, reshaping how we generate, distribute, and store power. At the center of this transformation is a rapidly growing technology: battery energy storage systems (BESS).
From utilities balancing renewables to data centers ensuring uptime to OEMs securing domestic battery supply, large-scale storage is quickly becoming a strategic asset. And as federal incentives, grid modernization, and sustainability goals converge, more companies are not just buying batteries, they’re building the capacity to produce, package, and control them.
At Design Systems, Inc., we’re seeing this play out firsthand. What was once a niche capital investment has now evolved into a race: the battery supply chain is the new battleground for manufacturing, logistics, and operational innovation.
The Shift: From Consumption to Control
Traditionally, energy was something manufacturers consumed, a utility line item, not a strategic concern. That’s no longer the case. Today, many industrial players are either:
Sourcing BESS unit to stabilize on-site power and offset demand charges,
Partnering or Acquiring suppliers to gain control of key components, or
Building their own storage capabilities as part of a vertically integrated strategy.
We’ve spoken with several companies exploring build-to-suit battery module facilities in North America to reduce dependency on overseas suppliers. Others are retrofitting existing space to accommodate new storage products for grid or EV applications. In all cases, the push is clear: if you want to remain competitive in the next decade, battery storage isn’t optional.
A Complex New Manufacturing Landscape Scaling up battery storage isn’t as simple as adding an assembly line. These systems require controlled environments, specialized material handling, robust testing infrastructure, and high-precision processes. Thermal management, safety protocols, and lifecycle performance all have direct implications for how facilities are designed and operated.
Here’s where many organizations hit a wall: they have ambitious plans, but their legacy operations aren’t built for this level of technical complexity or regulatory scrutiny.
That’s where a strategic operational partner becomes essential. Whether it’s cell-to-pack assembly, facility simulation, or logistics optimization for thermal and chemical materials, the key is designing operations that are scalable, safe, and adaptable to rapid innovation cycles.
Domestic Sourcing and Reshoring: A Tightrope Walk
The Inflation Reduction Act and other incentives have accelerated interest in domestic sourcing of battery components. But scaling in the U.S. comes with its own hurdles: labor availability, permitting timelines, and a fragmented supply base.
For mid-sized firms and suppliers entering the battery ecosystem, success hinges on smart facility design and phased scalability. We often advise clients to start with a digital model, a simulation of their proposed operations to validate layout, staffing, and throughput assumptions before breaking ground. That kind of planning can prevent costly retrofits and speed up commissioning by months.
We’re also seeing increased collaboration between utilities, private equity groups, and OEMs to fund and scale these facilities. It’s not just about finding space; it’s about building systems that can evolve as the technology and demand shift.
It's More Than Energy: It's a Strategic Advantage
Battery storage is not just a response to rising electricity costs or carbon goals, it’s a path to competitive advantage. Companies that can manufacture faster, ship smarter, and control their energy destiny will outmaneuver those that treat this trend passively.
The opportunity is massive. But so is the complexity. That’s why thoughtful planning, purpose-built design, and cross-functional collaboration matter more than ever.
Closing Thoughts
Battery storage isn’t just about energy anymore — it’s a structural change influencing core operations and competitive positioning.
At Design Systems, we help companies seize that opportunity, from greenfield battery manufacturing design to facility upgrades that support next-generation energy systems.
If you're planning a move into storage production, or looking to integrate energy resiliency into your operations, let’s talk. The future is storing more than energy, it’s storing your competitive edge.