U.S. Proposes Steep Tariffs on Critical E.V. Battery Material

The U.S. Commerce Department has proposed a steep 93.5% tariff on Chinese graphite, a critical material used in the production of electric vehicle (EV) batteries. This move is part of the Biden administration's efforts to reduce the country's reliance on foreign suppliers and bolster domestic production of EV components. Graphite is a key ingredient in the anodes of lithium-ion batteries, which are essential for powering EVs. China currently dominates the global graphite market, accounting for approximately 80% of the world's supply. The proposed tariff aims to level the playing field and incentivize U.S. companies to invest in domestic graphite production and processing. The decision comes amid growing concerns over the vulnerability of the U.S. supply chain for critical minerals and the need to secure a stable and reliable source of materials for the burgeoning EV industry. The tariff, if implemented, is expected to have significant implications for the EV market and the broader clean energy transition in the United States.