Article Summary –
The White House is increasing tariffs on several imports from China, including battery parts, natural graphite, permanent magnets, and certain critical minerals, in an attempt to protect American workers and businesses from China’s “unfair trade practices”. This includes increasing solar cell tariffs from 25% to 50%, EVs from 25% to 100%, and other industry products. The tariff increases are part of the Biden administration’s Inflation Reduction Act, which aims to promote domestic production in the clean energy sector, as China currently dominates the global lithium-ion battery market with 80-90% of manufacturing.
The White House announces tariff rate increases on battery parts
The tariff rate on battery parts will jump from 7.5% to 25% in 2024. Additionally, tariffs on natural graphite, permanent magnets and certain critical minerals will increase from zero to 25% in 2024 and 2026, respectively.
These actions aim to combat China’s unfair trade practices and protect American businesses and workers, including hiking solar cell tariffs from 25% to 50% and EVs from 25% to 100%.
The global lithium-ion battery industry, with 80-90% of its manufacturing in China, will be significantly impacted.
Impact on Inflation Reduction Act and US industry
These tariffs complement Biden’s Inflation Reduction Act and could counteract China’s ever lower prices that threaten the US industry’s competitiveness.
At the Energy Storage Summit USA 2024, delegates anticipated further curbs on China imports.
Higher tariffs for non-EV batteries and the US battery boom
Non-EV lithium-ion batteries will see higher tariffs two years later than EV batteries, giving BESS manufacturers a head start to source US-made cells and avoid the new 25% tariff.
The Inflation Reduction Act has boosted US battery manufacturing, with most of the capacity aimed at the EV industry.
A move towards secure local cell capacity is already in motion, with a new tariff poised to increase Chinese battery costs by nearly a fifth.
Despite the tariff increase, a recent report by Clean Energy Associates (CEA) predicted that US-made BESS products could be cost-competitive with Chinese alternatives by next year.
The 2nd Energy Storage Summit Asia will be hosted by Energy-Storage.news’ publisher Solar Media on 9-10 July 2024 in Singapore. For more information, visit the website.
—
Read More Kitchen Table News
