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EV Battery Costs Set For Sharp Rise On Trump’s Tariffs

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Trump Tariffs to Hike EV Battery Costs

The U.S. electric vehicle sector awaits a new set of challenges as former President Donald Trump’s newly announced tariff policy threatens to sharply drive up the cost of producing EVs. One of the most consequential changes is a 64.9 percent tariff on Chinese battery cells, a move that could send shock waves through the EV supply chain and dent affordability for American consumers.

The move, which is part of a wider economic policy to turn away from pro-EV measures, also entails removing existing EV tax credits and repealing mandates designed to encourage EV growth. The political pivot represents a sharp turn from recent years, when electrification was heralded as the future of American transportation.

The news triggered a swift and negative reaction from markets. The S&P 500 fell 4.5 percent, adding to losses from the day before. Energy stocks were hit particularly hard, with the Energy Select Sector SPDR Fund dropping more than 7%. Crude oil prices also experienced their largest single-week drop since 2021. Brent crude slipped to $65.47 a barrel, and WTI to $61.94.

But the biggest storm may be approaching the EV battery market. The tariffs, which target the Chinese—currently the main battery supplier to the U.S.—also apply to Japan and South Korea, but at comparatively lower rates of 24% and 25% respectively. Those countries now stand to emerge as a primary source of EV battery cells, potentially increasing their foothold in the U.S. market. China provided 70% of the battery cells imported into the U.S. in 2022, worth $16.45 billion. Japan and South Korea, by comparison, contributed $1.7 and $1.3 billion, respectively.

They estimate that new tariffs will collectively amount to an additional $8 billion in extra costs for battery pack producers and EV manufacturers alike. While some say this has the potential to create incentives for making batteries domestically, the road ahead is filled with pitfalls. For one, nations hit by the tariffs might retaliate by limiting exports of crucial battery-making technologies. In addition to that, many of the raw materials needed to produce the batteries are also likely to be hit with higher tariffs.

Debug(LLDP3) Notably, however, some essential battery metals including lithium carbonate, lithium hydroxide, cobalt metal and cobalt sulphate, are not subject to these new trade penalties. The latter has a recommendation, but others like nickel sulphate, manganese sulphate, iron phosphate, phosphoric acid and synthetic graphite are part of it. The U.S. makes almost no nickel sulphate and is highly dependent on imports — primarily from Belgium and Australia.

Industry analysts are raising alarms that these sweeping changes could derail the momentum the EV market has built in the past few years. Battery packs now account for a large share of overall vehicle costs, typically costing anywhere between $10,000 to $12,000—and that’s about a third of what a Tesla Model 3 would cost you. Raising those costs could render Evs much less within reach of normal American purchasers.

Adding pressure, Trump’s policy also repeals the $7,500 EV tax credit, which previously made it easier to buy the car. Promising to “Unleash American Energy,” the new directive makes the case for taking away what it calls “market distortions,” saying that subsidies and mandates favor EVs over gasoline vehicles. The administration’s position sets up a rollback of state-level emissions waivers and the stopping of any policies that it believes would restrict consumer choice.

These advances, however, arrive at a time when the EV industry was preparing to enter its next stage — one that needs mass-market adoption by the average person, not the early adopter. Jessica Caldwell, director of insights at Edmunds, said the next wave of EV buyers are much more cost-conscious and careful. “This larger cohort needs to be sold on EVs, and they are less enthusiastic, and less willing to make drastic lifestyle changes,” she said, citing signs of concern like charging infrastructure and home installations.

Tesla, the leader of the U.S. EV market, is getting hit, too. The company sold 336,681 vehicles in the first quarter, a number that came in well short of Wall Street expectations. It was the manufacturer’s weakest showing since 2022. The market response was immediate, with leading analysts such as JP Morgan marking down Tesla’s stock, warning of brand fatigue and increasing competitive pressures.

All of this taken together suggests that the U.S. EV industry now faces a period of uncertainty. Coupled with increasing production costs, dwindling incentives and a potential turn in public sentiment, it may become progressively more challenging for automakers to align with the ambitious electrification goals that were once imagined. Whether the U.S. can establish a competitive domestic battery supply chain fast enough to compensate for these obstacles is unclear — but for now, the path forward appears rockier than ever.

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Sourabh Gupta

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MG’s Cyberster: India’s Upcoming Premium Electric SUV Set to Launch in July 2025

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MG Cyberster: India’s Premium Electric SUV Coming July 2025

A Bold Step Into India’s Luxury EV Market

So, MG is about to bring out something pretty cool — the Cyberster, a premium electric SUV, expected to launch around July 2025. It’s their way of stepping up in India’s electric vehicle game and offering something that’s not just green, but also stylish and packed with tech.

EVs are getting popular here, and MG wants to be part of that wave, especially for folks who want a good-looking, comfy ride that’s loaded with modern features.

Striking Design Meets Cutting-Edge Technology

We don’t have all the info yet, but the Cyberster looks sharp. Think sleek and sporty, something that’ll catch eyes on the road.

Inside, expect lots of screens, smart features, and safety tech — basically, everything you’d want to make your drive smooth and fun. Whether it’s a quick city run or a weekend escape, this car’s aiming to make every trip enjoyable.

Performance That Packs a Punch

If you’re paying for a premium electric SUV, you want it to perform, right? While details are still under wraps, MG usually doesn’t disappoint. Expect a good driving range and enough power to make driving fun.

And with fast charging, you won’t be stuck waiting around forever — a big plus for busy folks.

What the Cyberster Means for Indian Consumers

This car means more choice for buyers who want a premium EV. The market is heating up, and it’s great because it gives you options that fit your style and budget.

MG is known for giving good value, so this might be a premium ride without the crazy premium price tag.

Growing Competition: A Win for Buyers

More companies entering the EV space means the competition’s getting fierce — Tata, Mahindra, Hyundai, and now MG all want your attention.

That means better cars, better prices, and more charging stations popping up, making EVs easier to own.

MG’s Vision for India’s EV Future

The Cyberster is just the start for MG. They’re clearly aiming to be a big player in India’s EV scene by giving buyers stylish, tech-packed cars.

As India moves toward greener transport, cars like this will help make electric vehicles the new normal.

 

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Sourabh Gupta

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India’s EV Market Heats: More Players, More Competition

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India EV market competition

The Electric Vehicle Battle Is Just Getting Started

You know how things are changing fast with electric vehicles here in India? Well, it’s no longer just a couple of companies in the game. Tata and Mahindra have been leading for a while, but now Maruti, Toyota, and Hyundai are jumping in too. It’s turning into a proper race, and that’s great news for anyone thinking about buying an EV.

More players mean more choices, and when companies compete, it usually means better deals and cooler cars for us.

New Entrants Bring Fresh Energy

Maruti Suzuki is like the go-to brand for most Indian families because their cars are affordable and reliable. Now, if they start selling EVs, it’s going to make electric vehicles a lot more reachable for everyday folks.

Then you have Toyota and Hyundai, which have been working on electric cars globally for years. They’re bringing that know-how to India, which means better technology and cars designed to handle our roads and conditions.

This fresh blood is going to push everyone to do better, which is a win for all of us.

What This Means for Consumers

For buyers, this is the best time to consider an EV. You’ll get a wider choice of vehicles — from simple and affordable models to fancy ones packed with features.

Also, with so many companies competing, expect better batteries that last longer, faster charging times, and prices that won’t scare you away.

Charging stations will become more common, making it easier to own and use an EV without stress.

Challenges for Established Players

Tata and Mahindra have done well so far, but now the heat’s on. They’ll need to keep improving their cars and customer service to stay ahead.

More competition means prices might get friendlier, and cars will keep getting better, which is good news for everyone.

The Road Ahead: A Win for India’s Green Future

All this competition will speed up EV adoption, which means cleaner air and less pollution.

With more companies investing in EVs, we’ll see more charging points, better batteries, and more jobs related to green technology.

The future looks electric, and it’s shaping up to be an exciting ride.

 

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Sourabh Gupta

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Tata Motors Sets Sights on Dominating 50% of India’s EV Market

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Tata Motors Aims for 50% Share of India’s EV Market

A Bold Ambition in a Growing Industry

Tata Motors isn’t just aiming to be in the EV race — they want to lead it. A recent ET Auto report says Tata wants to grab half of India’s electric vehicle market, which is a pretty big deal.

India’s EV scene is growing fast. More people are thinking about electric cars because petrol prices keep climbing, and folks want cleaner air. With all this happening, Tata’s shooting for the top spot, wanting to hold a massive share of the market.

Where Tata Motors Stands Today

Right now, Tata is the go-to name when it comes to EVs in India. The Nexon EV is one of the best-selling electric SUVs in the country. They’ve also got other models like the Tiago EV and Tigor EV that cover different budgets and needs.

But Tata knows it can’t just sit back and relax. Other brands like Mahindra, MG, and Hyundai are also pushing hard. Tata’s got to keep coming up with new stuff and get better if they want to stay ahead.

How Tata Plans to Achieve Its 50% Goal

So, how do they plan to take over half the market? They’ve got a few things lined up:

Expanding Its EV Lineup

Tata’s working on some cool new electric cars like the Harrier EV, Curvv EV, and the fancy Avinya. These options will give customers more choices, whether they prefer something small and practical or large and luxurious.

Building More Charging Stations

One of the biggest worries about EVs is charging. Tata’s working with Tata Power to set up more chargers across cities and towns. The easier it is to charge, the more people will want to buy EVs.

Making Batteries in India

Batteries are the priciest part of EVs, and importing them adds to the cost. Tata wants to make batteries right here in India, which should help bring prices down.

Going After Fleets and Government Buyers

Tata’s not just focusing on people buying cars for themselves. They’re also selling EVs to taxis, delivery companies, and government fleets. That’s a smart move because these buyers buy in bulk.

Challenges Ahead

It won’t be a smooth ride, though. Tata still has some bumps to cross:

  • Battery supply might not always keep up with demand.
  • Other companies are catching up fast.
  • Not all towns have enough charging points yet.
  • Convincing people outside cities to switch to EVs takes time.

The Road Ahead

Tata wants to own half of India’s EV market, and while that’s a huge goal, they have the right plan and the brand to pull it off. For buyers, this means better cars and more choices soon. For India, it’s a cleaner, greener future.

 

Article By
Sourabh Gupta

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