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.

How does tariff risk affect a battery energy storage system (BESS) project?

Mitigating tariff risk in battery energy storage system (BESS) projects is crucial for ensuring project financial viability, as tariff changes can significantly affect cost structures and overall project economics.

Will US tariffs affect energy storage?

There have also been indications that the US administration may consider other tariff proposals impacting energy storage, such as a 10–20% universal tariff, tariffs of up to 60% across the board on Chinese-origin goods, and tariffs of 25% on Mexican and Canadian origin goods.

What are China's Export restrictions on lithium iron phosphate & Lmfp cathodes?

China’s Ministry of Commerce has proposed export restrictions on some technology used to make lithium iron phosphate (LFP) and lithium manganese iron phosphate (LMFP) cathode materials and process critical minerals, such as lithium.

Are export controls a problem?

According to surveys completed by the Department of Commerce, export controls may lead domestic manufacturers to avoid exports, abandon or alter product lines that are subject to export controls, or relocate production outside the United States.

How do export controls work?

In practice, export controls require the coordination of multiple agencies each with specific jurisdiction and expertise. While the Department of Commerce’s Bureau of Industry and Security (BIS) acts as the lead agency, it relies on others, such as the Department of Energy, where their jurisdiction extends or expertise is necessary.