New Energy Tariffs

Complete vehicles: The tax rate will be increased from 25% to 100%; Share: Under a tariff rate of 100%, the share of Chinese new energy vehicle complete vehicles in the United States will remain low; Quantity: The impact on the current market is very limited. In 2023, China exported 18,700 new energy complete vehicles to the United States. From January to March 2024, the number of new energy complete vehicles exported was 3,094, accounting for less than 1% of China's exports and just over 0.1% of China's production, which can be ignored. Power batteries and materials: The tariff will be increased from 7.5% to 25%. Share: In the future, companies such as Ningde will basically adopt a light-asset technology licensing model to develop the US market, which has little to do with tariffs. At present, Ningde's cooperation with US OEMs has a comprehensive coverage and a guaranteed share. Quantity: In 2023, China will export a total of 18,700 new energy vehicles to the United States, including Tesla Shanghai. From January to March this year, there were just over 3,000 vehicles, and less than 1Gwh of these vehicles were equipped with Ningde batteries. In the past, Ningde directly supplied fewer models to the United States, so the impact was limited. Energy storage batteries: Increased from 7.5% to 25% Share: Currently, Japan and South Korea do not have a mature lithium iron phosphate electrochemical system. Even if tariffs are imposed on China, it will not affect the share of Chinese products in the US energy storage market. That is, as long as the US needs energy storage, China is the main supplier. Quantity: The increase in tax rates may lead to an increase in the price of US energy storage terminal products, which will have a slight impact on demand, but not large. The current battery price has dropped by about 30% compared to 2003. Even if the tariffs are added and the price returns to last year's level, the impact on US demand will be limited, and the impact on related companies will also be relatively low. Photovoltaic: Tariffs on batteries (whether assembled into components or not) will increase from 25% to 50% Share: Similar to energy storage batteries, there is no alternative country, and the share is still China's. Quantity: Referring to energy storage, there may be a slight impact on quantity.