Tariffs on energy storage batteries

What is the tariff rate on lithium ion batteries?

In a Fact Sheet issued by the White House today (14 May), the Administration said it would increase the tariff rate on lithium-ion batteries for electric vehicles (EVs) from 7.5% to 25% in 2024, and the tariff rate for non-EV lithium-ion batteries from 7.5% to 25% in 2026.

What are China's new tariffs on lithium-ion batteries?

On May 14, 2024, the Biden Administration announced changes to section 301 tariffs on Chinese products. For energy storage, Chinese lithium-ion batteries for non-EV applications from 7.5% to 25%, more than tripling the tariff rate. This increase goes into effect in 2026. There is also a general 3.4% tariff applied lithium-ion battery imports.

How much will EV tariffs increase in 2025?

Tariffs on battery parts and lithium-ion batteries for EVs will increase to 25 percent from 7.5 percent this year. A similar increase for non-EV lithium batteries will go into effect in 2026. By 2025, the tariff rate on semiconductors from China will double to 50 percent.

How will China's energy tariffs change in 2026?

A similar increase for non-EV lithium batteries will go into effect in 2026. By 2025, the tariff rate on semiconductors from China will double to 50 percent. Tariffs on permanent magnets, natural graphite, and certain other critical minerals are also set to rise to 25 percent from zero over the next couple of years.

Will high tariffs affect the EV industry?

But high tariffs have effectively blocked China from importing its EVs to the United States. Now, that tariff rate is jumping to 100 percent from the current level of 25 percent. Higher tariffs on batteries, semiconductors, and critical minerals could also affect the US EV industry.

What are the future tariffs on graphite?

Tariffs on permanent magnets, natural graphite, and certain other critical minerals are also set to rise to 25 percent from zero over the next couple of years. Graphite is used in batteries, solar panels, and steelmaking. Certain steel and aluminum products will see tariffs rise to 25 percent from today’s zero to 7.5 percent.