International Graphite has welcomed the US’ decision to impose tariffs on a range of Chinese imports, including batteries, battery components and parts, and critical minerals.
Earlier this week, the US Government announced the tariff rate on natural graphite and permanent magnets from China will increase from zero to 25 per cent in 2026, and the tariff rate for other critical minerals will increase from zero to 25 per cent in 2024.
The tariff rate on electric vehicles (EVs) will also increase from 25 per cent to 100 per cent in 2024, meaning EVs that use Chinese graphite for battery components will not be eligible for the Inflation Reduction Act (IRA) tax incentives.
The IRA legislation encourages innovation by giving firms various demand- and supply-side incentives to invest in developing and deploying clean energy technologies, while helping the country transition to net-zero.
“Despite rapid and recent progress in US onshoring, China currently controls over 80 per cent of certain segments of the EV battery supply chain, particularly upstream nodes such as critical minerals mining, processing, and refining,” the US Government said.
“Concentration of critical minerals mining and refining capacity in China leaves our supply chains vulnerable and our national security and clean energy goals at risk. In order to improve US and global resiliency in these supply chains, (the US Government) has invested across the US battery supply chain to build a sufficient domestic industrial base.”
International Graphite said graphite from its Springdale project in Western Australia will be free of US tariffs and Springdale customers will be eligible for IRA incentives as per the free trade agreement between Australia and the US.
“The timing of US tariffs coincides with the dates we expect to bring our Springdale mine into production,” International Graphite managing director and chief executive officer Andrew Worland said. “It is also the point at which world markets are expecting graphite demand to exceed supply.
“Our plan for a vertically integrated mine to market graphite business from Western Australia, fits perfectly with the goals of the US to reduce its reliance on China and secure other sources of trusted, reliable graphite.
“We have shown that Springdale has the potential to be a multi-decade, low-cost operation that will produce high quality graphite concentrates specifically for lithium-ion batteries.”
International Graphite also welcomed the Federal Government’s $8.8 billion investment over the next 10 years to strengthen the critical minerals supply chain as part of the A Future Made in Australia plan.
The Springdale graphite project in located in the Ravensthorpe region of WA. Since International Graphite took ownership of the project in 2022, it has grown to become one of the top 15 graphite deposits in the world.
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