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FAQs 6
Which international trade issues will remain a concern for energy storage projects?
Two major areas of international trade that will remain causes of concern for energy storage projects are the application of tariffs and supply chain integrity.
Will China impose tariffs on lithium-ion EV batteries?
An interesting issue will be the imposition of tariffs. There are existing tariffs pursuant to Section 301 of the Trade Act of 1974 on some Chinese-origin lithium-ion EV batteries and non-lithium-ion battery parts, which were increased to 25% in September 2024.
Should lithium batteries be reliant on one supplier?
As policy is changing all of the time, it’s good for companies to not be reliant on one supplier for all of their lithium battery supply needs. Trade wars also open the door for emerging territories to enter competition, such as India and Southeast Asia. Policies can also specifically target tech, a highly priced and heavily used consumer good.
Why is the lithium-ion battery market growing so fast?
The global lithium-ion battery market is growing faster than ever, led largely by a rise in demand for EVs, portable electronics, and grid energy storage. This rapid market growth has led to a spike in international production and distribution, which naturally has drawn the attention of local governments and governing international organizations.
How does lithium affect global supply?
This is particularly true with a few of the world’s biggest lithium-producing nations, such as China, certain countries in Africa, and Chile. This reduces the availability of crucial materials globally, sending a ripple through supply chains and affecting global pricing.
Why is Australia a superpower lithium supplier?
State-level incentives have made Australia a rising global superpower lithium supplier as it’s an increasingly prioritized material internally. Increased investment from around the world has led to expansions in lithium mining and production capacity and has solidified Australia as a major supplier to battery manufacturers, specifically to China.
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