CEA Update on U.S. Battery Policy Developments
The table provided for the new method features a list of Manufactured Product Components for battery packs, battery containers/housing, and inverters. This is the first time that Treasury has
Base year costs for utility-scale battery energy storage systems (BESS) are based on a bottom-up cost model using the data and methodology for utility-scale BESS in (Ramasamy et al., 2022). The bottom-up BESS model accounts for major components, including the LIB pack, the inverter, and the balance of system (BOS) needed for the installation.
Details about the battery, including the battery chemistry (e.g., color coding, chemical symbols); cathode and anode identifiers (for lithium-ion batteries [LIBs] only); voltage; capacity; model number; polarity; and non-spillable markings. Information or instructions on how to properly dispose of the battery.
As there is also a 3.4% general tariff on lithium-ion battery imports, the full tariff paid by importers will go from 10.9% to 28.4%. Lithium-ion battery modules, packs, and container blocks are generally categorized under the import code 8507.6020 if they are used for non-EV applications.
Lithium-ion battery modules, packs, and container blocks are generally categorized under the import code 8507.6020 if they are used for non-EV applications. As such, we believe that this is the code that this tariff change will apply to.
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