Insight
Automakers get a reprieve on graphite in the Inflation Reduction Act
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Report summary
The US government unveiled the Clean Vehicle Credit (section 30D) in the Inflation Reduction Act as landmark legislation to reduce reliance on China in its battery supply chain. Two years after the original proposal, Biden all but admitted the impossibility of this task by labelling graphite as an “impracticable-to-trace” material in the credit’s final ruling. The updated ruling allows IRA-compliant electric vehicles to contain Chinese graphite for at least two years longer than initially proposed.
Table of contents
- Executive summary
- The impossible task of ally-shoring natural graphite supply
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Limiting factors for compliance and impact to near-term US EV sales
- 2025
- 2026
- Impact on graphite suppliers
- Could synthetic graphite benefit from these developments?
- Timeline of Inflation Reduction Act rules
Tables and charts
This report includes the following images and tables:
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China dominates spherical graphite processing capacity, with a share of over 99% in 2024Critical mineral value content for a nickel-rich cellDespite the reprieve, only a limited number of projects could feasibly begin production by 2027
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2025 - compliant supply vs demand2026 - compliant supply vs demand - pathway 12026 - compliant supply vs demand - pathway 2
What's included
This report contains:
