OT:RR:NC:N1:103
Michael Roll
Roll & Harris LLP
2121 Avenue of the Stars, Suite 800
Los Angeles, CA 90067
RE: The country of origin of a battery cell
Dear Mr. Roll:
In your letter dated July 5, 2025, you requested a country of origin ruling on behalf of your client, Sunwoda
Automotive Energy Technology (Thailand) Co., Ltd.
The merchandise under consideration is identified as a lithium polymer prismatic battery cell, model number
SBP-01-3140, with a rigid aluminum housing that is rectangular in shape. The subject battery cell will have a
nominal voltage of 3.2 VDC, a nominal capacity of 314 Ah, and a nominal energy of 1005 Wh. Its
dimensions are approximately 174.3 millimeters in width, 206.9 millimeters in height, and 71.5 millimeters
in thickness.
The subject prismatic battery cell will be produced in Thailand from raw materials and component parts in a
fully automated production line. The raw materials (e.g., binders, solvents, additives, etc.) along with
semi-finished and finished components (e.g., aluminum foil, copper foil, separator material, electrolyte,
battery connectors, etc.) are all sourced from China. According to your submission, the materials will arrive
in Thailand in the form of material rolls, in powder form, or as liquids shipped in bulk containers. You state
that the battery connectors, battery housing, aluminum foil, or copper foil may also be sourced domestically
in Thailand.
The manufacturing process begins in Thailand with milling and mixing the raw materials that will be used to
produce the coating material for the electrodes of the battery cell. The first coating material is for the anode
electrode, which is prepared by dissolving a sodium carboxymethyl cellulose binder in an
N-methyl-2-pyrrolidone solvent. Afterwards, graphite material is added to the solution and mixed into a
homogenous slurry. A second slurry for the cathode electrode is created using lithium-ion phosphate,
polyvinyl fluoride, and other materials.
The slurries are then coated onto aluminum or copper foils that function as current collectors. The coated
foils are dried in an oven and then wound into semi-finished rolls. The rolls are fed into a calendaring press
that works the coated foil to the required thickness and increases the density and binding strength between
the active material and current collector.
Using a laser cutting process, the rolls are slit into strips that are then cut to size and shape, which includes
forming the electrode tabs. Next comes winding, a process that is described as alternately stacking electrode
sheets and separators to form a jelly roll structure. The electrode tabs are grouped together and welded to the
battery cover. The jelly roll is wrapped with mylar and placed inside an aluminum battery case, which is
sealed by laser welding the cover to the case. At this point, the cell is ready for activation, a process that
involves pre-charging the battery cell at a low charging speed to form a solid electrolyte interface, heating the
cell in a vacuum chamber to prevent water from reacting with the electrolyte, and pumping electrolyte into
the cell. Lastly, each cell is tested and sealed, which involves using a high temperature aging process to
accelerate the absorption of electrolyte, introducing a second injection of electrolyte, and hermetically sealing
the cell.
When determining the country of origin for purposes of applying current trade remedies under Section 301
additional duties, the substantial transformation analysis is applicable. See, e.g., Headquarters Ruling Letter
H301619, dated November 6, 2018. The test for determining whether a substantial transformation will occur
is whether an article emerges from a process with a new name, character, or use different from that possessed
by the article prior to processing. See Texas Instruments Inc. v. United States, 681 F.2d 778 (C.C.P.A. 1982).
This determination is based on the totality of the evidence. See National Hand Tool Corp. v. United States,
16 C.I.T. 308 (1992), aff’d, 989 F.2d 1201 (Fed. Cir. 1993).
Based upon the facts presented, various discrete material forms, including liquid chemicals, material rolls,
and raw materials are sent to Thailand where they are made into a new product. The foreign materials are
used in a production line and further processed into semi-manufactured materials and subcomponents, which
are then used to create a battery cell. The manufacturing process results in an article, a lithium-ion prismatic
battery cell, which emerges from the process with a new name, character, and use, different from that
possessed by the materials prior to the processing. Therefore, it is the opinion of this office that the
manufacturing processes performed in Thailand result in a substantial transformation of the foreign
components and the country of origin of the prismatic battery cell is Thailand.
The holding set forth above applies only to the specific factual situation and merchandise description as
identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations
(CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the
information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and
complete in every material respect. In the event that the facts are modified in any way, or if the goods do not
conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and
Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2.
Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic
verification by CBP.
This ruling is being issued under the provisions of Part 177 of the Customs and Border Protection
Regulations (19 C.F.R. 177).
A copy of the ruling or the control number indicated above should be provided with the entry documents
filed at the time this merchandise is imported. If you have any questions regarding the ruling, please contact
National Import Specialist Paul Huang at [email protected].
Sincerely,
(for)
James Forkan
Acting Director
National Commodity Specialist Division