Brazil Raises Import Tariff on 48V LFP Batteries to 25% Following Domestic Manufacturer Request

Brazil’s government increased the import tariff on 48-volt lithium iron phosphate batteries from 18% to 25% effective May 19, 2026, through May 18, 2027, following a February 2025 request from local manufacturer UCB. The higher rate applies exclusively to LFP batteries used in stationary applications for telecommunications base stations and solar energy systems up to 4,800 watts capacity. Other lithium-ion batteries under the same customs classification maintain the 18% rate.

The tariff adjustment received support during public consultation from major Brazilian companies including WEG, Enersys, and Moura. UCB’s request utilized Brazil’s temporary tariff exception mechanism designed to protect sensitive sectors and stimulate domestic competitiveness. The Ministry of Finance characterized the measure as moderate and targeted, aimed at rebalancing relative prices and reducing external vulnerability.

Wladimir Janousek, consultant and secretary at the National Institute of Clean Energy, stated the specific applications affected by the 25% rate represent the bulk of Brazil’s current imported battery demand. However, he warned the import tax increase will not necessarily enhance local industry competitiveness. The National Institute positioned itself against the measure during public consultation, arguing it repeats mistakes previously observed with photovoltaic module tariffs.

The battery tariff follows a broader February 2026 increase affecting capital goods, communication technologies, and other battery classifications, adjusting general tariffs for various energy storage components to between 16% and 20%. That wider measure increased duties on over 1,000 imported products, including smartphones, industrial machinery, medical equipment, and telecommunications infrastructure, with increases reaching up to 7.2 percentage points according to government technical notes.

The Finance Ministry reported capital goods and information technology imports grew 33.4% since 2022, with import penetration exceeding 45% of national consumption by December 2025. Importers criticized the measures as potentially increasing costs for essential production equipment, with Fiorde Group noting much of Brazil’s industrial capacity operates with equipment over 20 years old while domestic capital goods production fails to meet internal demand. The government maintains the tariffs align with international movements using tariff instruments to counter external shocks and dumping practices.