FOR IMMEDIATE RELEASE
February 22, 2024

Washington, D.C. – Today, the North American Graphite Alliance announced that it formally submitted a request to United States Trade Representative (USTR) Katherine Tai to reinstate Section 301 tariffs on three graphite products from China used to make lithium-ion battery anode material, along with a novel market report demonstrating the necessity and likely impact of such intervention. The products, which are forms of natural and artificial graphite, have been excluded from 301 tariffs since May 2020.

NAGA believes intervention from the federal government is necessary to protect North America’s nascent graphite industry. China completely controls the global graphite market: in 2023, China produced 79% of the world’s natural graphite and 97% of synthetic graphite for use in anode material. China’s graphite supply surpasses global demand, allowing it to flood markets with cheap graphite and manipulate prices. This is unsurprising, given that the creation of the 301 tariffs themselves are the result of the US government’s determination that China engages in widespread unfair trade practices across numerous industries.

This is a crucial time for the domestic graphite industry. Demand for anode material is expected to surge exponentially as the domestic battery manufacturing market grows. In fact, North American demand for anode material will grow 300% over the next five years, while global demand will swell 189% over the same period. Without a robust domestic graphite industry, China can disrupt the clean energy transition – and the economic and environmental benefits associated with it – at any moment by manipulating the global graphite market.

As part of its campaign to bring attention to the severity of the issue, NAGA commissioned the report by Oxford Economics[HS1] . It presents startling evidence (including the statistics above) illustrating China’s dominance of the graphite supply chain and demonstrates how 301 tariffs can protect North America’s graphite producers at a critical moment for the industry.

In a statement, NAGA Spokesperson Erik Olson said:

“Trade protections must be enacted to blunt the effects of China’s ability to overproduce graphite and effectively control the global market. Reinstating 301 tariffs on all graphite products would help stimulate the burgeoning graphite industry in North America, boost the U.S. economy and national security, and create a stable industry that will aid the clean energy transition. We urge USTR Tai to forgo excluding graphite products from 301 tariffs again.”

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