How much is the tariff for energy storage batteries

Will China increase battery tariffs in 2025?

The outgoing Biden-Harris administration in January announced an increase in tariffs on batteries from China from that 7.5% to 25%, from 2025 for electric vehicle (EV) batteries and from 2026 for battery energy storage system (BESS) batteries, increasing the overall tariff on batteries to 28.4% (10.9% + 17.5%).

What is the tariff on batteries?

The tariff on batteries, just one part of $300 billion worth of Chinese goods targeted by the White House last year, will fall from 15 percent to 7.5 percent, effective February 14. The move will incrementally improve economics for grid storage projects planning to use battery cells, modules and packs made in China.

Will China impose a new tariff on lithium-ion batteries?

There are already tariffs on lithium-ion batteries from China, and increases set to come into force in 2025 and 2026, so this new 10% tariff would combine with those. Batteries from China going to the US are currently subject to a tariff of around 10.9%, made up of separate 3.4% and 7.5% tariffs (US Customs ruling filing).

How will the tariff increase affect us system integrators?

The tariff increase will raise the costs for US system integrators using China’s batteries by 11-16%. Cost increases will be higher for those who add less value in the US. An example would be those who procure containers or racks from China versus just the cells or modules.

How will China's new tariffs affect us Bess integrators?

Image: Vistra / 3BL / Meranda Cohn. The new tariffs on batteries from China will increase costs for US BESS integrators by 11-16%, consultancy Clean Energy Associates said, adding that new guidance around the domestic content ITC adder will make it easier to access.

What is the difference between the ITC & China tariffs?

The ITC can be seen as the ‘carrot’ to deploy BESS projects using locally produced technologies while the tariffs on imports from China are the ‘stick’.