New tariffs imposed on Chinese goods coming into the US by president Donald Trump could impact production of lithium-ion batteries made in America as well as those imported because most of the raw materials and components come from China.
Tariffs on Chinese imports, including batteries, range between 10% and 54% and are set to have a significant impact on US businesses, raising costs for goods made in the US as well as those imported.
The US imported $4bn of lithium-ion batteries from China in the first four months of 2024 and imported majority of its required lithium-ion batteries from China, which makes 76% of the world’s lithium-ion battery cells.
The new tariffs are in addition to existing tariffs on Chinese imports, which in some cases totals 82% on lithium-ion batteries.
Companies making renewable energy equipment and installations will also be affected by the increased costs.