Addressing Tariffs and Trade in Energy Storage Projects
Tariffs on Chinese-origin lithium-ion non-EV batteries are scheduled to increase to 25% effective January 1, 2026. Otherwise, batteries of non-Chinese origin storage batteries
Tariffs on Chinese-origin lithium-ion non-EV batteries are scheduled to increase to 25% effective January 1, 2026. Otherwise, batteries of non-Chinese origin storage batteries
Tariffs and trade policies significantly influence the cost of battery energy storage projects by impacting the pricing dynamics of imported battery components and systems,
Tariffs and trade policies significantly influence the cost of battery energy storage projects by impacting the pricing dynamics of imported battery components and systems,
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Recent trade actions have introduced significant battery tariffs on goods imported from China. These changes include duties as high as 104% on some clean energy components, including lithium-ion batteries, critical for energy storage and EV systems. According to U.S. import data, lithium battery shipments from China reached $1.9 billion in 2024.
Mitigating tariff risk in battery energy storage system (BESS) projects is crucial for ensuring project financial viability, as tariff changes can significantly affect cost structures and overall project economics.
An interesting issue will be the imposition of tariffs. There are existing tariffs pursuant to Section 301 of the Trade Act of 1974 on some Chinese-origin lithium-ion EV batteries and non-lithium-ion battery parts, which were increased to 25% in September 2024.
As new battery tariffs and expanded China tariffs continue to reshape global trade, U.S. policymakers and businesses are reevaluating the domestic battery supply chain. This section outlines the current status of U.S. battery production, the resources required to scale it, and the challenges involved in reducing reliance on overseas suppliers.