US imports of lithium-ion batteries remained higher than a year prior, but volumes declined from April as tariffs weighed.
Imports of lithium-ion batteries totaled 74,462t in May, up 12pc from a year earlier but down 27pc from April, according to customs data.
Following the Geneva agreement in May, US import tariffs on Chinese energy storage batteries were set at 40.9pc, and 58.4pc on EV batteries. US president Donald Trump on 7 July announced 25pc tariff for Japan and South Korea.
The majority of imports, totaling 67,181t, were used in energy storage systems, with an average price of $15,840/t. The remaining 7,287t were used in electric vehicles (EVs), down 57pc from a year earlier, a sharper decline between the two end uses.
Trump on 4 July signed a budget bill that ended the $7,500 tax credit for EVs and hybrid vehicles purchased after 30 September.
The loss of incentives may lead to a slowdown in demand and hinder the establishment of a domestic battery supply chain, resulting in continued dependence on imports.
The US Customs and Border Protection determines a product's country of origin based on a substantial transformation analysis — whether the product undergoes a process that results in a new name, character, or use distinct from its original form
South Korean battery makers' share of the US market is likely to increase because of both domestic production and imports, even if the cathode active materials are sourced from other countries.
