SEOUL, March 12 (AJP) - The U.S. House of Representatives on Monday approved the "Reducing Dependency on Foreign Adversary Batteries Act," marking a significant shift in U.S. policy by establishing the first non-tariff barrier against Chinese battery manufacturers.
The legislation, which now heads to the Senate, would prohibit the use of batteries from six leading Chinese companies in projects involving the Department of Homeland Security (DHS) or funded by the agency.
The bill specifically targets CATL, BYD, Envision Energy, EVE, Hithium Energy, and Gotion High-Tech. If enacted, the law would take effect in October 2028, barring these companies from DHS-related projects and closing potential loopholes that might allow circumvention through third countries.
Given bipartisan support in the House and growing momentum for stronger measures against China, the bill is widely expected to pass the Senate.
The United States already imposes a 45 percent tariff on Chinese batteries and bans electric vehicle imports from China. Some Chinese firms have sought to bypass tariffs by establishing local production facilities for energy storage systems (ESS) and other battery applications.
However, this legislation could neutralize those efforts by specifically prohibiting batteries from the named companies. While the regulatory authority falls under DHS rather than the Department of Energy, which oversees most battery projects, this marks the first direct U.S. government restriction on Chinese battery purchases and could pave the way for further non-tariff barriers.
"If the U.S. strengthens non-tariff barriers against Chinese batteries, private American companies will inevitably shift away from Chinese products to mitigate risks," said a source from South Korea’s battery industry.
The decision is expected to have immediate implications for the U.S. energy storage market, potentially redirecting orders to South Korean manufacturers such as LG Energy Solution, Samsung SDI, and SK On, as well as Japan’s Panasonic.
LG Energy Solution has already begun mass production of lithium iron phosphate (LFP) batteries for ESS, while Samsung SDI and SK On are preparing to launch their own LFP production lines.
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