{"id":273264,"date":"2025-04-03T16:39:04","date_gmt":"2025-04-03T16:39:04","guid":{"rendered":"https:\/\/news.talkwithrattan.com\/index.php\/2025\/04\/03\/how-trumps-tariffs-could-hobble-a-u-s-battery-boom\/"},"modified":"2025-04-03T16:39:04","modified_gmt":"2025-04-03T16:39:04","slug":"how-trumps-tariffs-could-hobble-a-u-s-battery-boom","status":"publish","type":"post","link":"https:\/\/news.talkwithrattan.com\/index.php\/2025\/04\/03\/how-trumps-tariffs-could-hobble-a-u-s-battery-boom\/","title":{"rendered":"How Trump\u2019s Tariffs Could Hobble a U.S. Battery Boom"},"content":{"rendered":"<div style=\"text-align:center\"><img decoding=\"async\" src=\"https:\/\/i2.wp.com\/static01.nyt.com\/images\/2025\/04\/03\/science\/03cli-batteries\/03cli-batteries-facebookJumbo.jpg?ssl=1\" class=\"attachment-post-thumbnail size-post-thumbnail wp-post-image\" alt=\"How Trump\u2019s Tariffs Could Hobble a U.S. Battery Boom\" title=\"How Trump\u2019s Tariffs Could Hobble a U.S. Battery Boom\" \/><\/div><p> <br \/>\n<\/p>\n<div data-testid=\"companionColumn-0\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">The <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2025\/04\/02\/business\/economy\/trump-tariffs.html\" title=\"\">sweeping tariffs<\/a> that President Trump announced on Wednesday could hobble the use of giant batteries that energy companies are increasingly installing to help them tap more wind and solar power and make the broader electric grid more reliable.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Over the past five years, grid batteries <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/interactive\/2024\/05\/07\/climate\/battery-electricity-solar-california-texas.html\" title=\"\">have become one of the biggest growth industries<\/a> in the U.S. energy sector. In states like Texas and Arizona, companies have been installing stacks of lithium-ion cells the size of shipping containers. They can soak up excess wind and solar energy and save it for when it\u2019s needed. In California, the use of batteries to store solar power for the evening hours <a class=\"css-yywogo\" href=\"https:\/\/www.spglobal.com\/commodity-insights\/en\/news-research\/latest-news\/natural-gas\/122624-california-batteries-taking-bigger-bite-out-of-gas-fueled-energy\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">has helped utilities reduce the amount<\/a> of natural gas that is burned.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Yet the majority of America\u2019s lithium-ion batteries are still imported, and 69 percent of those imports came from China in 2024, according to BloombergNEF. Mr. Trump\u2019s latest round of tariffs, when combined with earlier trade moves, <a class=\"css-yywogo\" href=\"https:\/\/www.energy-storage.news\/trump-1930s-level-tariffs-bring-china-battery-duty-to-82-big-increases-for-southeast-asia\/\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">will impose a 64.5 percent tax on grid batteries<\/a> from China, and that rate would rise to 82 percent next year.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">\u201cThis will throttle U.S. energy storage deployment,\u201d Jason Burwen, vice president of policy and strategy at the battery developer GridStor, <a class=\"css-yywogo\" href=\"https:\/\/bsky.app\/profile\/jburwen.bsky.social\/post\/3lluqh5ugrc2o\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">wrote in a social media post<\/a>. \u201cBad for business, bad for grid reliability.\u201d<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-1\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">Energy companies <a class=\"css-yywogo\" href=\"https:\/\/www.eia.gov\/todayinenergy\/detail.php?id=64586\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">were expected to install<\/a> a record 18,200 megawatts of grid battery capacity this year, enough to store the entire output from 18 large nuclear reactors for a few hours, according to the U.S. Energy Information Administration. Together, batteries, wind and solar power were expected to make up 93 percent of capacity added to the grid.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-2\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">Those batteries help address renewable energy\u2019s biggest weakness: the fact that the wind and sun aren\u2019t always available. In states that rely heavily on solar power like California and Texas, a boom in battery installations has helped reduce the risk of blackouts during the hot summer months by working together with gas plants to provide power when demand spikes.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">But batteries aren\u2019t just useful for adding more renewables: Utilities also use them to smooth out small disruptions in the flow of electricity, say, if a power plant unexpectedly tripped offline. Or, they can be used to reduce congestion on transmission lines.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Companies have largely been installing grid batteries because the price of lithium-ion technology has plummeted (the batteries are similar to those found in electric cars). Tariffs could reverse that trend.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-3\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">\u201cBatteries are the only major clean tech sector where imports still overwhelmingly come from China,\u201d said Antoine Vagneur-Jones, head of trade and supply chains at BloombergNEF. \u201cSo the impacts of these tariffs are going to be a lot bigger for batteries than they are for other technologies.\u201d<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-4\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">In recent years, the United States has started to build up a domestic battery supply chain. After the 2022 Inflation Reduction Act passed, the Biden administration <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2024\/10\/30\/climate\/clean-energy-us-2024-election.html\" title=\"\">poured billions of dollars into new battery factories<\/a> and offered tax credits for both domestic manufacturers and the use of batteries in both grids and electric vehicles.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">But many of those factories face an uncertain future now that President Trump and Republicans in Congress are looking to roll back a variety of clean energy policies.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Teasing out the precise effects of tariffs on the energy mix is complicated, Mr. Vagneur-Jones said. Right now, batteries often compete with natural gas plants as a technology to fill in the gaps left by fluctuating wind and solar power.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-5\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">But it won\u2019t always be so easy for many power companies to increase their use of gas: There is <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2025\/03\/17\/climate\/renewable-energy-trump-electricity.html\" title=\"\">a lengthy global backlog for new gas turbines<\/a>, and a company trying to build a new gas plant from scratch today may have to wait until 2030 or beyond. The oil and gas industry <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2025\/02\/28\/business\/energy-environment\/trump-oil-steel-tariffs.html\" title=\"\">is also being hurt by new tariffs<\/a> on steel and aluminum, which can affect everything from the steel pipe used to line new gas wells to power transformers.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">\u201cIt\u2019s always tempting to say these tariffs are good for fossil fuels, bad for clean energy,\u201d Mr. Vagneur-Jones said. \u201cBut I think it\u2019s just bad for everyone.\u201d<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/www.nytimes.com\/2025\/04\/03\/climate\/trump-tariffs-battery-storage.html\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The sweeping tariffs that President Trump announced on Wednesday could hobble the use of giant batteries that energy companies are increasingly installing to help them tap more wind and solar power and make the broader electric grid more reliable. Over the past five years, grid batteries have become one of the biggest growth industries in [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":273265,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":"","fifu_image_url":"https:\/\/static01.nyt.com\/images\/2025\/04\/03\/science\/03cli-batteries\/03cli-batteries-facebookJumbo.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[166934,7528,1717,2413,170337,23784,17434,39560,164053,206582,6321,18165,1734,221,163486,166933],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/273264"}],"collection":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/comments?post=273264"}],"version-history":[{"count":1,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/273264\/revisions"}],"predecessor-version":[{"id":273266,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/273264\/revisions\/273266"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/media\/273265"}],"wp:attachment":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/media?parent=273264"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/categories?post=273264"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/tags?post=273264"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}