Energy Gang What do the tariff wars mean for low-carbon energy? | Recorded live at Wood Mackenzie’s Solar & Energy Storage Summit
Apr 25, 2025
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Stockpiling as Tariff Risk Strategy
- Companies manage tariff uncertainty by stockpiling solar panels and some batteries, though batteries are trickier due to degradation.
- This strategic stockpiling balances risk of tariff changes with desire to avoid overpriced or outdated technology purchases.
China's Battery Overproduction Impact
- China's massive overproduction of batteries, driven by EV demand overestimation, drives down costs globally despite tariffs.
- Tariffs can be very high and still U.S. battery prices may continue to fall because of China's scale and subsidy policies.
Domestic Solar Production Growth Uncertain
- U.S. solar manufacturing is progressing from modules to cells and wafers, but recent policy uncertainty has caused hesitation.
- If policy stays stable, domestic solar production will expand due to supply chain and customer demand benefits beyond just cost.