Trade tariffs in the United States could increase pricing for energy storage systems
August 21, 2019
Under articles Section 301 of United States trade policy, the United States is set to introduce 10% tariffs on approximately $300 billion of Chinese imports by the end of 2019, including lithium-ion batteries. While tariffs for some products will be delayed until 15 December 2019, tariffs for lithium-ion batteries are to begin 1 September 2019. Because of these tariffs and others already implemented, including 25% on imported power conversion systems (PCS) and battery materials such as lithium, cobalt, nickel, and other metals, the cost of battery energy storage in the United States is projected to increase. Integrators using Lithium Iron Phosphate (LFP) batteries will be especially affected, due to China’s market share of the global supply chain for such products. Because raw materials are also targeted, the smaller domestic manufacturing base of lithium-ion batteries could also remain affected.