Price difference between China and the US for energy storage batteries

If you're in the business of battery energy storage systems (BESS), you've probably felt the squeeze of tariffs on Chinese imports. For years, China has been a go-to for affordable, high-capacity energy storage solutions, but ongoing trade policies and tariffs have made importing these systems into the U.S. more complicated — and expensive.

U.S. tariffs on Chinese lithium batteries have become a critical factor shaping the global battery market in 2025. These tariffs directly impact lithium-ion batteries' cost, supply chain, and competitiveness, essential for electric vehicles (EVs), renewable energy storage, and consumer electronics.

2025 is likely to see battery prices surge in the United States on the back of increases in tariffs and duties imposed on battery energy storage systems and their components from China. While lithium iron phosphate (LFP) capacity is being established outside of China, few options exist today to dodge costs of increasing tariffs.

The annual growth of battery energy-storage systems (BESS) in China may decline to 30 gigawatts (GW) in 2025. This is a decrease from the projected 42 GW in 2024. In 2024, China and the US together accounted for 80% of the installed capacity, according to Infolink Consulting.

A 3.4% global tariff on lithium-ion batteries, regardless of origin. A Section 301 tariff targeting Chinese imports, currently at 7.5%, is scheduled to rise to 25% by January 2026. Additional tariffs imposed under recent trade actions push the total tariff on Chinese lithium batteries to approximately 82% by 2026.

The global energy storage market nearly tripled in 2023 alone, adding 45 gigawatts (97 gigawatt-hours), yet prices in China fell to record lows of $115 per kilowatt-hour for two-hour systems—a 43% year-over-year decrease 2.