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The North American Graphite Alliance (NAGA), which represents US and Canadian producers of battery-grade graphite, has submitted a request to US Commerce Consultant Katherine Tai to reinstate Part 301 tariffs on three graphite merchandise from China. The group additionally commissioned a market report from Oxford Economics that explains the rationale behind reinstating the tariffs, and the probably influence in the marketplace.
As common Charged readers know, China utterly controls the worldwide graphite market. in 2023, China produced 79% of the world’s pure graphite and 97% of artificial graphite to be used in anode materials.
In 2018, the Workplace of the US Commerce Consultant imposed tariffs of 25% beneath Part 301 of the Commerce Act of 1974, in response to China’s “unfair commerce practices.” In 2021, Tesla and battery maker SK Improvements requested the federal government to waive tariffs on synthetic graphite in powder or flake kind, and pure graphite in powder kind, saying that they couldn’t entry graphite for battery anodes in enough quantity outdoors of China.
Now, demand for anode materials is predicted to surge because the US battery manufacturing market grows, and the Purchase American provisions of the IRA and BIL name for producers to make use of rising proportions of domestically-produced uncooked supplies. In response, corporations are speeding to determine home graphite manufacturing and processing. NAGA believes intervention from the federal authorities is important to guard North America’s nascent graphite business.
The issues transcend mere provide shortages. Based on NAGA, China’s graphite provide surpasses world demand, permitting it to flood markets with low-cost graphite and manipulate costs. In 2023, China imposed new export controls on graphite—a transfer that graphite consultants known as “a really massive deal” for the EV business. The nation might use the brand new guidelines to cut back exports of graphite. To place it one other means, China might disrupt the clear vitality transition at any second by manipulating the worldwide graphite market.
“Commerce protections should be enacted to blunt the results of China’s means to overproduce graphite and successfully management the worldwide market,” stated NAGA spokesperson Erik Olson. “Reinstating 301 tariffs on all graphite merchandise would assist stimulate the burgeoning graphite business in North America, enhance the US financial system and nationwide safety, and create a secure business that can support the clear vitality transition.”
Supply: E&E Information
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