US Graphite Producers Want 920% Tariff Imposed on Chinese Graphite
Last week, a coalition of graphite producers in America filed a petition to the Department of Commerce and the International Trade Commission asking the department to impose tariffs on Chinese imports of synthetic and natural graphite used to manufacture Li-ion battery anode material. In its petition, the American Active Anode Material Producers argued that the 25% tariff that’s currently imposed on Chinese graphite imports was too low.
The coalition also asked that an investigation be conducted under America’s antidumping and countervailing duty statutes. This development comes as trade tensions between the United States and China continue escalating following president-elect Trump’s threat to impose additional tariffs on the East Asian nation. This resulted in China banning exports of critical minerals like antimony, germanium, and gallium to America.
The coalition’s spokesperson Erik Olson stated that their objective was to help protect the graphite industry in North America, which was being overwhelmed by unfair trade practices. Olson explained that the domestic graphite industry was in danger if the federal government didn’t provide trade relief, noting that the anticompetitive moves by China made it hard for graphite producers to strengthen their financial positions, thus preventing them from achieving a strong foothold in the global market.
Analysts warn that the imposition of 920% tariffs on these imports could significantly increase battery prices and delay EV adoption.
A report released by Roth Capital Partners seconds this, noting that electric vehicle and energy storage battery costs in America may increase significantly if the trade disputes in critical minerals are escalated. Roth Capital Partners’ MD Justin Clare explained that the incremental cost was about $135 per kWh, which was equal to a 125% rise. Normally, the anode’s cost makes up about 15% of the total cost of a battery.
In their report, the coalition noted that an increase in tariffs would protect graphite producers in the U.S., who occupy only 1% of the global market. In comparison, China holds 93% of the mineral’s supply as the biggest producer of the mineral globally. The country also has the largest reserves at an estimated 78 million metric tons.
This petition comes as America works to grow its domestic supply of graphite. The federal Department of Energy recently entered into a conditional agreement with Novonix to loan the battery materials and technology company over $754 million to fund a proposed new facility in Tennessee. The facility would manufacture synthetic graphite to be used in electric vehicle batteries.
Many North American firms, such as Reflex Advanced Materials Corp. (CSE: RFLX) (OTCQB: RFLXF), are working to create critical mineral sources within the region so that the stranglehold that China has over the supply chains of these resources can be gradually loosened. Supportive government action can aid this undertaking.
NOTE TO INVESTORS: The latest news and updates relating to Reflex Advanced Materials Corp. (CSE: RFLX) (OTCQB: RFLXF) are available in the company’s newsroom at https://ibn.fm/RFLXF
Please see full terms of use and disclaimers on the MiningNewsWire website applicable to all content provided by MNW, wherever published or re-published: https://www.MiningNewsWire.com/Disclaimer
Last week, a coalition of graphite producers in America filed a petition to the Department of Commerce and the International Trade Commission asking the department to impose tariffs on Chinese imports of synthetic and natural graphite used to manufacture Li-ion battery anode material. In its petition, the American Active Anode Material Producers argued that the 25% tariff that’s currently imposed on Chinese graphite imports was too low.
The coalition also asked that an investigation be conducted under America’s antidumping and countervailing duty statutes. This development comes as trade tensions between the United States and China continue escalating following president-elect Trump’s threat to impose additional tariffs on the East Asian nation. This resulted in China banning exports of critical minerals like antimony, germanium, and gallium to America.
The coalition’s spokesperson Erik Olson stated that their objective was to help protect the graphite industry in North America, which was being overwhelmed by unfair trade practices. Olson explained that the domestic graphite industry was in danger if the federal government didn’t provide trade relief, noting that the anticompetitive moves by China made it hard for graphite producers to strengthen their financial positions, thus preventing them from achieving a strong foothold in the global market.
Analysts warn that the imposition of 920% tariffs on these imports could significantly increase battery prices and delay EV adoption.
A report released by Roth Capital Partners seconds this, noting that electric vehicle and energy storage battery costs in America may increase significantly if the trade disputes in critical minerals are escalated. Roth Capital Partners’ MD Justin Clare explained that the incremental cost was about $135 per kWh, which was equal to a 125% rise. Normally, the anode’s cost makes up about 15% of the total cost of a battery.
In their report, the coalition noted that an increase in tariffs would protect graphite producers in the U.S., who occupy only 1% of the global market. In comparison, China holds 93% of the mineral’s supply as the biggest producer of the mineral globally. The country also has the largest reserves at an estimated 78 million metric tons.
This petition comes as America works to grow its domestic supply of graphite. The federal Department of Energy recently entered into a conditional agreement with Novonix to loan the battery materials and technology company over $754 million to fund a proposed new facility in Tennessee. The facility would manufacture synthetic graphite to be used in electric vehicle batteries.
Many North American firms, such as Reflex Advanced Materials Corp. (CSE: RFLX) (OTCQB: RFLXF), are working to create critical mineral sources within the region so that the stranglehold that China has over the supply chains of these resources can be gradually loosened. Supportive government action can aid this undertaking.
NOTE TO INVESTORS: The latest news and updates relating to Reflex Advanced Materials Corp. (CSE: RFLX) (OTCQB: RFLXF) are available in the company’s newsroom at https://ibn.fm/RFLXF
Please see full terms of use and disclaimers on the MiningNewsWire website applicable to all content provided by MNW, wherever published or re-published: https://www.MiningNewsWire.com/Disclaimer
