Some battery makers could start to run short of key elements within weeks, according to Steve Christensen, executive director of the Responsible Battery Coalition, an association representing battery and automakers and battery sellers.
Already, manufacturers have seen the price of antimony, an element used to extend the life of traditional lead-acid batteries, more than double since China restricted exports of it last year. The element isn’t one of the 17 rare earths but is among the critical minerals that Trump wants to see produced domestically.
Initially, automakers will likely try to absorb any increase in the cost of their batteries without raising vehicle prices, but that may not be sustainable if China’s restrictions remain in place, Christensen said. A 25% tariff Trump put on all imported automobiles and auto parts cars already was expected to increase costs, although the president hinted this week that he might give the industry a temporary reprieve.
The U.S. fulfilled its rare earths needs with domestic sources until the late 1990s. Production largely ended after low-cost Chinese ores flooded global markets. Robots, drones and other new technologies have rapidly increased demand for the raw materials.
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