(Bloomberg) -- China’s exports of lithium-ion batteries to the US spiked to a record last month as companies raced to ship products before the government removed tax benefits.
Beijing cut or cancelled export tax rebates on a range of products from batteries to used cooking oil, solar equipment and gasoline. Overseas sales surged ahead of the changes that took effect on Dec. 1.
Shipments of lithium-ion batteries to the US jumped by 27% to $1.9 billion in November from a year earlier. The export tax rebate for batteries — mostly used in electric vehicles — was cut to 9% from 13%.
China dominates global battery production and its exports to the rest of the world have ballooned in the past few years, along with growing shipments of steel, solar panels and electric vehicles. Sales to the US have expanded even after President Joe Biden slapped a 25% import tariff on batteries in September.
Donald Trump’s victory in the presidential election in November — and the prospect of more tariffs under his administration — was already spurring Chinese battery exporters to hurry US-bound shipments, and the Chinese tax changes added extra impetus.
China’s overall battery exports rose by 5% year-on-year in November, much lower than the increase to the US.
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