A mid-quarter update from Clean Energy Associates (CEA) reveals how recent shifts in U.S. trade policy are significantly altering the economics of battery energy storage systems (BESS). The update, part of CEA’s Q1–Q2 2025 Price Forecasting Report, focuses on the aftermath of sweeping tariffs introduced in April and May under the International Emergency Economic Powers Act (IEEPA), and the partial 90-day tariff pause currently in place.
Despite the temporary relief, CEA notes that total duties on Chinese battery imports still exceed 40% — a figure projected to climb to 82% in 2026 if the pause lapses without further policy adjustments. In the most extreme case, if maximum IEEPA 3 tariffs return, total duties could soar past 150% on lithium-ion batteries from China.
Other key developments highlight that the U.S. has extended tariffs of 20–36% to other supplier nations like South Korea, Malaysia, and Poland. This move effectively reduces the pricing gap between Chinese and non-Chinese imports, intensifying challenges for energy storage developers seeking affordable alternatives.
While U.S.-manufactured systems remain costly due to scale and material input constraints, some domestic and international manufacturers are exploring cost-absorption tactics to remain competitive. CEA’s interim forecast underscores that the evolving tariff structure is forcing developers to reevaluate procurement strategies, project timelines, and vendor partnerships amid growing market uncertainty.
In parallel, a new report on BESS Quality Risks highlights continued factory-level manufacturing defects — particularly in thermal management and fire suppression systems. CEA warns that unresolved defects at the manufacturing stage can result in significant financial and operational setbacks for developers.
CEA’s market intelligence team is offering access to their findings and welcomes media inquiries for expert commentary. Stakeholders can access the full interim report and quality risks analysis for deeper insights into how policy dynamics are reshaping storage project economics and supply chains.
