The U.S. Department of Commerce has announced a 93.5% tariff on imported battery materials from China, which will affect the electric vehicle industry.
Tariff on Battery Materials
On July 18, 2025, the U.S. Department of Commerce stated that a 93.5% tariff would be imposed on imported battery materials from China. This decision was made in response to complaints from domestic manufacturers and aims to support U.S. companies while addressing alleged unfair trade practices by China.
Impact on Tesla
Following the tariff announcement, Tesla's shares dropped by 1.4%. The increase in tariffs will raise the cost of battery cells by approximately $7 per kilowatt-hour. This directly affects U.S. electric vehicle manufacturers such as Tesla and Panasonic, who opposed the new duties.
Market Prospects and Supply Chain Changes
This measure may alter the landscape for battery materials supply. It is worth noting that U.S.-China trade tensions in 2018-2019 led to significant shifts in the global supply chain, prompting companies to diversify their sources and strengthen domestic investments.
The imposition of a 93.5% tariff on battery materials could significantly impact the manufacturing costs of electric vehicles in the U.S. and drive changes in the supply market.
