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.

49:26

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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.

Intro

2min

Reviving Graphite: Economic Hope in Alabama

14min

The Sphere Tato Challenge

5min

Tariffs and the Struggle for Graphite Industry Growth

2min

Building Supply Chains and Influencing Consumer Choices

2min

Graphite is sort of the one-hit wonder of minerals. And that hit? Pencils. Everyone loves to talk about pencils when it comes to graphite. If graphite were to perform a concert, they'd close out the show with "pencils," and everyone would clap and cheer. But true fans of graphite would be shouting out "batteries!" Because graphite is a key ingredient in another important thing that we all use in our everyday lives: lithium ion batteries.

Almost all of the battery-ready graphite in the world comes from one place: China. That's actually true of lots of the materials that go into batteries, like processed lithium and processed cobalt. Which is why it was such a big deal when, earlier this year, President Biden announced a tariff package that will make a bunch of Chinese imports more expensive. Included in this package are some tariffs on Chinese graphite. He wants to create a new battery future—one that doesn't rely so much on China.

In this episode, we get down on the ground to look at this big supply chain story through the lens of one critical mineral. And we visit a small town that realizes that it might be the perfect place to create an American graphite industry. And we find that declaring a new battery future is one thing, but making it happen is another thing entirely.

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Planet Money

Bringing a tariff to a graphite fight

Podcast summary created with Snipd AI

Quick takeaways

Deep dives

The Importance of Graphite in Battery Production

China's Dominance in Battery Industry and US Efforts to Compete

Challenges and Solutions in Establishing US Graphite Processing Industry

Remember Everything You Learn from Podcasts