The effect of US tariffs, implemented by President Donald Trump, on the battery and energy storage industry are likely to have a significant impact on costs.
The US energy industry more widely is exempted, with oil and energy commodities, including many metals and critical materials, spared from extra tariffs, according to Argus Media.
In 2024, the US imports of battery cells were worth $23.8 billion, which were mainly from China, Japan and South Korea, it said.
The impact will differ for differing chemistries, but felt through all components, including the electrolyte, cathode, anode and separator.
The White House says that the tariffs are supposed to account for the US goods trade deficit.
There will be an impact on lithium-ferro-phosphate (LFP) market, since China is where 99% of LFP cells were produced in 2024 according to Benchmark minerals intelligence data.
There has been a 104% tariff slapped onto all Chinese imports. This follows the Biden administration’s decision to increase the lithium battery tariff from 7.5% to 25% from January 2026, according to Reuters.
Including the previous measures by past administrations it would have meant a 64.9% tariff on Chinese battery cells specifically, according to Oil Price.
The Trump administration gave China a 34% tariff, as well as two rounds of 10% tariffs added in February and March. Trump said those were in response to Beijing’s alleged role in the Fentanyl crisis.
As of April 9, Trump added an extra 50% on most imports in response to China adding a 34% tariff on US goods.
The Chinese Government also imposed restrictions on 30 US organisations, mostly in the US defence industry, adding to the 24 US companies affected already, according to Reuters.
It also just imposed an extra 50% of tariffs on the US, due to come into effect on Thursday 12:01 according to Nikkei Asia.
There are also anti-dumping measures put in place, which will affect prices of anodes and energy storage systems.
The materials needed for photovoltaic panels will also face tariffs. Four-fifths of solar imports come from Cambodia, Malaysia, Thailand and Vietnam according to Canary Media.
These countries will have tariffs between 24 and 49%.
All battery and energy storage sectors will be affected by the tariffs on steel and aluminium imports, which will be 25%.
