What The AES Corporation told the SEC could break it.

Section 301 tariffs on Chinese lithium-ion batteries and components for energy storage systems raised to 25% effective Jan 1, 2026 (from 7.5%), raising AES storage build costs.

“The U.S. also maintains Section 301 tariffs on certain Chinese made lithium-ion batteries and related components utilized for energy storage systems, with such tariffs currently set at 25% effective January 1, 2026 (an increase from the previous rate of 7.5%).”

Uyghur Forced Labor Prevention Act may block AES suppliers from importing solar cells and panels into the U.S., threatening the renewables build pipeline.

“Additionally, the Uyghur Forced Labor Prevention Act (“UFLPA”) seeks to block the import of products made with forced labor in certain areas of China, at any point in the supply chain, and may lead to certain suppliers being blocked from importing solar cells and panels into the U.S.”

AES Argentina operations exposed to severe peso devaluation (22% in 2024, 29% in 2025) and continued hyperinflation.

“In 2024 and 2025, the Argentine peso devalued against the USD by approximately 22% and 29%, respectively, and Argentina's economy continued to be highly inflationary.”

Pending AD/CVD investigations on Chinese natural and synthetic graphite (lithium-ion anode material) could raise AES energy-storage input costs.

“There are also ongoing AD/CVD investigations with respect to exports by China of natural and synthetic graphite used to make lithium-ion battery anode material. Final ITC and Commerce AD/CVD determinations in these investigations are expected in the first quarter of 2026 and could result in price increases.”