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6 Frequently Asked Questions about “Does the export of energy storage batteries require tariffs ”
How does tariff risk affect a battery energy storage system (BESS) project?
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.
Will China impose tariffs on lithium-ion EV batteries?
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.
Will US tariffs affect energy storage?
There have also been indications that the US administration may consider other tariff proposals impacting energy storage, such as a 10–20% universal tariff, tariffs of up to 60% across the board on Chinese-origin goods, and tariffs of 25% on Mexican and Canadian origin goods.
When will Chinese-origin lithium-ion non-EV batteries be taxed?
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 have not been subject to multi-front targeted tariff or duty actions.
Which international trade issues will remain a concern for energy storage projects?
Two major areas of international trade that will remain causes of concern for energy storage projects are the application of tariffs and supply chain integrity.
Which countries accounted for 80% of battery energy-storage capacity in 2024?
China and the US together accounted for 80% of the installed battery energy-storage capacity in 2024.