Autos

Tesla wins tariff exclusion from US on imported aluminum

Key Points
  • Tesla wins a tariff exclusion for the Japanese aluminum used in its batteries, according to government documents.
  • The Department of Commerce will waive the 10% tariffs placed on aluminum for Japan's Nippon Light Metal Co Ltd.
  • The waiver is valid for one year.
Tesla's Gigafactory in Sparks, Nevada
Uptin Saiidi | CNBC

Electric-car maker Tesla won a tariff exclusion from the U.S. on the imported Japanese aluminum it uses in its battery cells.

The Commerce Department's decision waives the 10% tariffs that would be placed on the battery cells manufactured in Tesla's Nevada Gigafactory, according to Reuters, which reported the news Monday.

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Tesla wins tariff exclusion on imported aluminum from Japan

The Palo Alto, California-based company asked for the waiver in April. It said the aluminum is produced by Nippon Light Metal and sought an exclusion for 10 million kilograms annually.

The Commerce Department said in the document dated June 5 and posted in recent days that the aluminum "is not produced in the United States in a sufficient and reasonably available amount or of a satisfactory quality," Reuters reported. The waiver will last one year.

The exclusion request was posted to a federal website earlier in May.