“We need to be making cell packs outside of China and that’s what we are going to be focusing on the next year,” Chief Executive Officer Badri Kothandaraman said in an interview with Bloomberg News. He did not specify where the company would move its operations.

While a third of Enphase’s battery assembly operations is currently based in the US, the company gets battery cell packs, a key component, from China, he said.
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Trump imposed a 10% tariff on Chinese imports on Tuesday, in what he says is part of an effort to stop the flow of fentanyl into the country. China retaliated with levies on US energy and other measures including tightened export control on critical minerals. China accounts for nearly 70% of US battery imports, according to BloombergNEF.

Enphase said the tariffs will result in a small increase in the company’s costs, resulting in a 2% to 3% boost to how much a homeowner will pay for a system.

“It’s not going to hurt us too much,” Kothandaraman said.

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