US-China Battery Trade: Tariffs Threaten Industry CostsUS-China Battery Trade: Tariffs Threaten Industry Costs
Explore Energy Storage News' insights on US-China battery trade tensions, AAAMP's tariff petition, and its impact on the battery industry.

In their latest article about the US-China battery trade, Energy Storage News (ESN), our sister brand, discusses the growing trade tensions between the US and China over battery materials. Recently, the American Active Anode Material Producers (AAAMP) filed a petition seeking Antidumping and Countervailing Duties (AD/CVD) on Chinese imports of active anode material. According to ESN, this action complements existing trade barriers like Section 301 tariffs and the Uyghur Forced Labor Prevention Act (ULFPA), which could limit Chinese battery products further.
The Section 301 tariffs, which came into effect on January 1, 2025, for electric vehicles (EVs) and will extend to battery energy storage systems (BESS) by 2026, are expected to raise costs by 28.4%. Former President Donald Trump has hinted at an additional 10% tariff, although this remains a threat.
“Analysts have estimated that, if successful, that AD tariff on active anode materials would roughly double the price of batteries imported from China, with active anode materials typically making up 10-15% of a battery’s cost,” stated Cameron Murray, Senior Reporter at ESN.
The AAAMP's petition is groundbreaking as it focuses on battery materials, particularly active anode materials, which China dominates. "This case is a pre-emptive strike to protect nascent US industries," explained Nithya Nagarajan, partner at law firm Husch Blackwell. The petition seeks tariffs ranging from 828% to 921%, which could roughly double the price of imported batteries.
The US is investing heavily in domestic battery production, but the active anode material industry remains underdeveloped. "This case is an effort to create a level playing field for US manufacturers," Nagarajan added. A decision on the case is expected by summer 2025 or early 2026, with further developments anticipated by mid-2025.
DoD blocking CATL escalates tensions
Further fueling these tensions, the US Department of Defense (DoD) recently added CATL—the world's largest EV battery producer and a critical supplier to global automakers—to its list of Chinese companies allegedly aiding Beijing's military. This designation, which directly impacts CATL's reputation, comes when the company is expanding its footprint in the US market. The Chinese company recently struck a deal with Ford to license its lithium-iron phosphate battery technology for production in a Michigan facility. The move further complicates the trade dynamics between the two countries and is expected to intensify the scrutiny of Chinese technology companies involved in the US supply chain.
According to Reuters, CATL has stated it is “not engaged in any military-related activities.” Reuter noted that some lawmakers argue that reliance on Chinese battery technology could undermine US efforts to establish a secure and independent supply chain for EVs. To learn more about these trade developments and their potential impact on the battery industry, as well as more insights from Nagarajan and Murray, read the full article here.
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