Guatemala City container photovoltaic energy storage lithium battery foreign trade

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.

On the other hand, the government in Chile has tightened its control over its popular resource lithium to monetize it better domestically, straining global lithium supply chains and pushing manufacturers to diversify their options.

State-level incentives have made Australia a rising global superpower lithium supplier as it's an increasingly prioritized material internally. Increased investment from around the world has led to expansions in lithium mining and production capacity and has solidified Australia as a major supplier to battery manufacturers, specifically to China.

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.

This is particularly true with a few of the world's biggest lithium-producing nations, such as China, certain countries in Africa, and Chile. This reduces the availability of crucial materials globally, sending a ripple through supply chains and affecting global pricing.

In this instance, local policy has negatively affected the global lithium supply chain while promoting commerce within the borders of Chile. These local incentives can provide an opportunity to secure more stable and cost-effective material supplies.