Battery energy storage tariffs tripled; domestic content rules updated
Altogether, the full tariff paid by importers will increase from 10.9% to 28.4%. Lithium-ion battery modules, packs, and container blocks are generally categorized under
The tariffs affect a range of clean energy imports including EVs, solar PV, battery energy storage, and inputs for these. This briefing focuses on the tariffs affecting battery energy storage. Policy changes affecting the solar portion of the Section 301 tariffs are addressed in a separate briefing.
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.
Other “Domestic” Suppliers: A few manufacturers with U.S.-based production or assembly – such as Hanwha Qcells (Georgia factories), First Solar (Ohio), Mission Solar (Texas), and Silfab (Washington) – do not incur these import tariffs on their U.S.-made panels. They have an effective price advantage now.
The price of lithium-ion technology has fallen sharply in recent years, making utility-scale battery installation more financially viable. However, the recent introduction of tariffs could make them more expensive and deter companies from investing in storage solutions.
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