Effects of imported energy storage batteries

Are grid batteries facing a 65% tariff?

Grid batteries are facing a roughly 65% tariff that could rise to more than 80% by next year—just as the U.S. was expected to see record expansion in adoption in battery storage. In February, the U.S. Energy Information Administration projected that 18.2 GW of utility-scale battery storage would be added to the United State’s energy grid in 2025.

How much lithium-ion batteries did the US import from China?

The US imported some $4 billion worth of lithium-ion batteries from China in the first four months of this year, according to BloombergNEF. A Stihl employee assembling rechargeable batteries for tools. The US already has a variety of tariffs on Chinese goods in place.

How will trump's EV tariffs affect EV batteries?

But it was just the latest action in a long-running, bipartisan quest to counter China’s growing economic strength and grip on key components of the high-tech and cleantech sectors. Still, Trump’s proposed 60% to 100% tariffs would far exceed the ones currently set on batteries, which stand at 28.4% for EV batteries.

Does China dominate the battery industry?

“But there’s one exception to that, and it’s batteries,” says Antoine Vagneur-Jones, head of trade and supply chains at BloombergNEF, a market research firm. China absolutely dominates the battery sector.

Where do lithium-ion batteries come from?

Most lithium-ion batteries required for this, however, are imported from China; Chinese lithium-ion battery exports to the U.S. reached an all-time high of $1.9 billion in December 2024. And while battery prices are shifting downwards worldwide due to an oversupply, tariffs are expected to increase the cost in the U.S.

What percentage of lithium ion batteries are produced in China?

According to a 2022 report from the International Energy Agency, the country produces around 85% of the world’s battery anodes, 70% of its cathodes, and 75% of its battery cells. In addition, more than half of the global processing of lithium, cobalt, and graphite, key minerals used to produce lithium-ion batteries, occurs in China.