Duke Energy Bows To Pressure, Reportedly To Phase Out CATL Batteries At Its Civilian Projects
Portfolio Pulse from Lekha Gupta
Duke Energy Corporation (NYSE:DUK) is phasing out CATL batteries at its civilian projects and decommissioning them at a major Marine Corps base due to concerns over security and pressure from Congress. This decision follows warnings from U.S. officials about potential Chinese government-linked hacking threats to critical infrastructure. Duke Energy aims to replace CATL batteries with those from domestic or allied suppliers by 2027, emphasizing support for a robust American supply chain. Despite reporting an adjusted EPS increase, Duke Energy missed consensus revenue and EPS estimates in its latest financial report.
February 09, 2024 | 10:55 am
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Duke Energy is transitioning away from CATL batteries due to security concerns and Congressional pressure, aiming to use domestic or allied suppliers by 2027. The company recently reported an EPS increase but missed revenue and EPS consensus estimates.
The decision to phase out CATL batteries reflects Duke Energy's response to security concerns and Congressional pressure, which could be seen positively for addressing national security concerns but may involve costs and challenges in transitioning to new suppliers. The recent financial report showing missed consensus estimates could temper short-term investor enthusiasm, making the overall short-term impact neutral.
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