Which international trade issues will remain a concern for energy storage projects?

Two major areas of international trade that will remain causes of concern for energy storage projects are the application of tariffs and supply chain integrity.

Do US companies need a license to export to Malta?

U.S. companies considering exporting to Malta should consult the European Commission’s helpdesk for information on import restrictions. The TARIC (Tarif Intégré de la Communauté), described above, is also available to help determine if a license is required for a particular product.

How does tariff risk affect a battery energy storage system (BESS) project?

Mitigating tariff risk in battery energy storage system (BESS) projects is crucial for ensuring project financial viability, as tariff changes can significantly affect cost structures and overall project economics.

Will US tariffs affect energy storage?

There have also been indications that the US administration may consider other tariff proposals impacting energy storage, such as a 10–20% universal tariff, tariffs of up to 60% across the board on Chinese-origin goods, and tariffs of 25% on Mexican and Canadian origin goods.

Are tariff changes a project risk?

While tariff and trade changes are usually perceived as a project risk, EPC contractors generally have discretion as to the timing and sourcing of project equipment and materials and, arguably, can reduce their exposure to tariff changes and trade policy.

Will China impose tariffs on lithium-ion EV batteries?

An interesting issue will be the imposition of tariffs. There are existing tariffs pursuant to Section 301 of the Trade Act of 1974 on some Chinese-origin lithium-ion EV batteries and non-lithium-ion battery parts, which were increased to 25% in September 2024.