Photo = Yonhap news

 

[Alpha Biz= Kim Jisun] The U.S. House of Representatives passed the "Foreign Adversary Battery Dependency Reduction Act" on Monday (local time), aiming to reduce reliance on Chinese-made batteries. The legislation restricts the purchase of Chinese batteries for projects funded by the Department of Homeland Security (DHS).


The bill targets six major Chinese battery companies: CATL, BYD, Envision Energy, EVE, HiTium Energy, and Gotion High-Tech, all of which are leaders in the Chinese battery industry.


Starting in October 2028, batteries made by Chinese companies will be banned from use in U.S. projects funded by DHS or involving DHS-related funds. The six companies are directly named in the bill, making circumvention impossible. With bipartisan agreement in the House and growing sentiment in Congress to strengthen sanctions against China, there is a high likelihood that the bill will also pass in the Senate.


The U.S. already imposes a 45% tariff on Chinese batteries. In response, companies like CATL are attempting to bypass these tariffs by building local production facilities. However, if individual company-specific regulations, such as this bill, are enforced, these attempts may be undermined.

 

 

 

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