Brazil increases import tax on batteries at local manufacturer’s request

The Brazilian government has raised the import tax rate for specific lithium-ion batteries from 18% to 25%.

The decision updates the tariff for lithium-ion cells to 25%, valid between May 19, 2026, and May 18, 2027. This rate applies specifically to 48V lithium iron phosphate (LFP) batteries used in stationary applications for telecommunications base stations and in solar energy systems with a capacity limited to 4,800W. Other lithium-ion batteries under the same customs classification remain at the 18% rate.

The change in the tax rate is the result of a request for a tariff increase made by local manufacturer UCB in February 2025, supported by the country’s mechanism for temporary tariff exceptions designed to protect sensitive sectors or stimulate competitiveness. During the public consultation on the matter, UCB’s request received support from companies including WEG, Enersys, and Moura.

Wladimir Janousek, an industry consultant and secretary at the National Institute of Clean Energy (Inel), told pv magazine Brazil that the specific applications hit by the higher rate represent the majority of current demand for imported batteries in Brazil. However, he warned that the import tax hike will not necessarily result in increased competitiveness for the local industry.

“Inel positioned itself against it, during the public consultation opened after UCB’s request, because it understands that this increase repeats a mistake we also saw happen in relation to photovoltaic modules,” Janousek said.

This targeted measure follows a broader increase in import taxes enacted a few months ago in February, which affected other types of battery classifications alongside capital goods and communication technologies, adjusting general tariffs for various energy storage components to between 16% and 20%.

From pv magazine Brazil.