Adamas take: New US tariffs on Chinese EVs, cells and critical materials

102.5%

Chinese electric vehicles imported into the U.S. will be subjected to a 102.5% tariff (up from 27.5%) in 2024. Li-ion EV batteries will see a 25% tariff (up from 7.5%) while non-EV Li-ion batteries will see the same tariffs in 2026.

Some critical materials, including graphite and permanent magnets will see a new 25% tariff (up from 0%) in 2026.

Adamas take:

Given a mere 60,000 units, or 2.29% of all passenger EVs sold in the U.S. in 2023 were of Chinese origin, the impact of the policy will have minimal impact in the near term.

The policy goals are clearly intended on nurturing the U.S. electric vehicle industry (complimenting the Inflation Reduction Act), which has had a late start.

We expect the protectionist measures to be most felt in the medium- to long-term.

[Extract from the May issue of the EV Battery Lithium Monthly service.]

Chris Williams, Analyst at Adamas Intelligence

Chris is an Analyst at Adamas Intelligence focused on the global lithium industry. He researches and analyzes the lithium value chain to uncover actionable opportunities for clients.

Chris has 11-years experience in mining and oil & gas operations optimization, delivering value from data intensive insight generation. He completed his Bachelor and Masters of Engineering at the University of Queensland, majoring in Mechanical Engineering, and is currently completing a Masters of Business Administration at the University of British Columbia.