Global Energy Storage Integrator Powin Files for Chapter 11 Bankruptcy Amid Tariff-Induced Supply Chain Disruptions
Key Insights
Powin, a leading global grid-scale battery energy storage system supplier, filed for Chapter 11 bankruptcy protection in New Jersey on June 11, 2025.
The bankruptcy was primarily attributed to significant supply chain disruptions and the adverse financial impact of increased tariffs.
Brown Rudnick has been appointed as lead counsel to represent the Official Committee of Unsecured Creditors in the ongoing Chapter 11 proceedings.
This event underscores the vulnerability of clean energy integrators to global trade policies and the critical need for resilient supply chains in the renewable energy sector.
Powin, a prominent global integrator of clean energy storage solutions based in Oregon, filed for Chapter 11 bankruptcy protection in New Jersey on June 11, 2025. The filing comes as the company grappled with severe supply chain issues, exacerbated by increased tariffs that significantly impacted its operational costs and financial stability. Brown Rudnick has been retained as lead counsel to the Official Committee of Unsecured Creditors, indicating a complex restructuring process ahead for one of the world's largest grid-scale battery energy storage system suppliers.
Powin specializes in manufacturing large-capacity batteries essential for storing energy generated by intermittent renewable sources such as solar plants and wind farms. Its role as an integrator is crucial in the clean energy transition, providing the backbone for grid stability and renewable energy dispatchability. The company's financial distress highlights a growing concern within the clean energy sector regarding the fragility of global supply chains and the profound impact of geopolitical trade policies.
The Brown Rudnick team, tasked with representing the interests of unsecured creditors, is led by partner Ken Aulet, supported by partners Robert Stark, Jeff Jonas, Ben Silverberg, Eric Goodman, and associates Matthew Sawyer, Maria DeOliveira, and Elizabeth Castano. Their involvement underscores the substantial financial implications of Powin's bankruptcy for a wide array of stakeholders, including suppliers, customers, and investors.
The energy storage market has seen exponential growth, driven by ambitious decarbonization targets and the increasing penetration of variable renewable energy sources. However, this growth has also exposed vulnerabilities, particularly for companies reliant on international component sourcing. The imposition of tariffs on key components, often from specific regions, can dramatically inflate costs, erode profit margins, and disrupt project timelines, as evidenced by Powin's situation. This case serves as a stark reminder that while demand for clean energy solutions remains robust, the underlying economics are highly sensitive to global trade dynamics and supply chain resilience.
Industry analysts are closely monitoring the proceedings, as Powin's bankruptcy could have ripple effects across the energy storage ecosystem. It may prompt other integrators and developers to diversify their supply chains, explore localized manufacturing options, or seek greater clarity and stability in trade policies. The outcome will likely influence future investment strategies in the grid-scale battery sector, emphasizing the need for robust financial planning and risk mitigation in a rapidly evolving market.