Critical mineral companies in the U.S. and Canada are urging the Biden administration to reinstate Trump-era tariffs on Chinese graphite — a move they say is crucial to standing up new, domestic electric vehicle supply chains.
The North American Graphite Alliance, or NAGA, asked U.S. Trade Representative Katherine Tai on Wednesday to reinstate Section 301 tariffs on three graphite products from China used to make lithium-ion battery anode material. The agency, responding to requests from EV manufacturers like Tesla, has waived those tariffs since May 2020.
asked U.S. Trade Representative Katherine Tai on Wednesday
The group, which includes hardrock miners in Canada and producers of synthetic graphite in the U.S., argued that reinstating the tariffs — initially imposed during the Trump administration — is needed to counter China when it comes to graphite, the single-largest mineral component of any EV battery. As it stands, China dominates the market and produces almost 70 percent of the world’s natural and synthetic graphite, according to Benchmark Mineral Intelligence. China also makes more than 90 percent of the world’s anodes for lithium-ion batteries.
“The North American graphite industry is in a vulnerable position and its future hinges on the ability to counter China’s anti-competitive actions,” Erik Olson, a spokesperson for NAGA, told Tai in the letter.
