Planet Money
Bringing a tariff to a graphite fight
Jun 12, 2024
Graphite isn't just for pencils—it's a superstar in lithium-ion batteries! As the U.S. aims to reduce reliance on Chinese imports, the impact of new tariffs on graphite imports comes into play. A small Alabama town is emerging as a potential hub for a domestic graphite industry, facing challenges and opportunities along the way. Meanwhile, the intricacies of processing graphite particles for batteries present amusing yet serious hurdles. The debate around tariffs reveals their complex role in fostering a growing industry while influencing consumer choices.
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Quick takeaways
- Graphite is a key ingredient in lithium-ion batteries, crucial for energy storage.
- Tariffs on Chinese graphite aim to reduce reliance on China and promote US battery industry growth.
Deep dives
The Importance of Graphite in Battery Production
Graphite, a key ingredient in batteries, holds crucial importance for the energy electric future. Despite its significance in battery production, the majority of battery-ready graphite comes from China. The podcast highlights how graphite, often overshadowed by other materials like lithium, plays a critical role in the battery industry's development. Recently, the US government announced tariffs on Chinese graphite as part of a broader strategy to reduce reliance on China and boost US clean tech industries.
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