A tale of two markets? The case for an ex-China premium

There is little denying that the global graphite market is beginning to bifurcate, with the introduction of the US' Inflation Reduction Act in 2022 and China's move to ban graphite exports at the end of 2023. Particularly in the battery industry, companies are rushing to evaluate whether they need to alter their procurement plans, and how much it will cost them to source locally. Even if higher prices are paid, can the US meet demand from its battery producers domestically? Or will it still need to rely on imports from free-trade partners? And what will setting up local supply chains mean for the end consumer? Our latest Insight analyses production costs at a selection of assets globally, considering them against current Chinese price benchmarks to evaluate whether higher prices should be paid for diversified supply.