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Automakers get a reprieve on graphite in the Inflation Reduction Act

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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

Tables and charts

This report includes 6 images and tables including:

  • China dominates spherical graphite processing capacity, with a share of over 99% in 2024
  • Critical mineral value content for a nickel-rich cell
  • Despite the reprieve, only a limited number of projects could feasibly begin production by 2027
  • 2025 - compliant supply vs demand
  • 2026 - compliant supply vs demand - pathway 1
  • 2026 - compliant supply vs demand - pathway 2

What's included

This report contains:

  • Document

    Automakers get a reprieve on graphite in the Inflation Reduction Act

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