FOR IMMEDIATE RELEASE
May 30, 2024

Washington, D.C. – Today, the North American Graphite Alliance (NAGA) applauds the decision from the Biden Administration and United States Trade Representative (USTR) Katherine Tai to reinstate Section 301 tariffs on three graphite products from China, as requested by NAGA in its February 21 appeal to USTR. The products, which are forms of natural and artificial graphite used to make lithium-ion battery anode material, have been excluded from 301 tariffs since May 2020. NAGA led an industry effort to have the tariffs reinstated through its formal request to USTR and the issuance of a novel market report demonstrating the necessity and likely impact of such intervention. The exclusions will expire on June 15^th, at which time the 25% duty on these graphite products will be reimposed.

“NAGA praises the Biden Administration for reinstating 301 tariffs on natural and artificial graphite from China. Trade protections are necessary to blunt the effects of China’s manipulative trade practices. Thanks to these tariffs, our members will be on a slightly more level playing field with China in the global market,” said NAGA spokesperson Erik Olson. “While we thank the Administration for listening to us, our focus now turns to what additional steps must be taken to protect North America’s graphite producers. There is still much to be done, and the Administration must work alongside the entirety of the battery supply chain to implement policies that will facilitate offtakes and help develop a domestic graphite industry.”

NAGA was formed to advocate for the intervention of the federal government to protect North America’s nascent graphite industry. China dominates the global graphite supply chain and abuses its production capability by creating more supply than demand. This oversupply allows China to manipulate the global graphite market by flooding it with cheap, highly subsidized products, driving down prices in a concerted effort to smother foreign competitors. This malicious trade practice makes it challenging for graphite producers to secure the investments necessary to bolster production capacity to the levels needed to meet domestic demand.

Graphite is the most prevalent mineral in lithium-ion batteries and is listed as a critical mineral on multiple federal government lists. North American demand for graphite anode material will grow 300% over the next five years, while global demand will swell 189% over the same period. The Biden Administration has invested billions of dollars in developing the domestic graphite supply chain through the IRA and the Infrastructure and Investment Jobs Act (IIJA).

###