The White House relaxed the rules under the Inflation Reduction Act, to allow US carmakers to source graphite from Chinese companies and still qualify for subsidies. This move came as a regional war in Mozambique engulfed the only qualified supplier of graphite under the Act, and carmakers were left scrambling to find graphite, a key component of electric vehicle batteries.

But there is a problem: China has strong export curbs on graphite, along with gallium and germanium. It's unclear if China's export restrictions came as a result of the advanced semiconductor export bans, or because of US's de-facto import ban on Chinese electric vehicles. Nevertheless, China has not shown a willingness so far to relax their strict approvals process to export graphite to US carmakers.

Resources and links:

WHITE HOUSE FACT SHEET: Securing a Made in America Supply Chain for Critical Minerals
[ Ссылка ]

Barron's, The Push for Made-in-America Batteries Comes With Its Own Risks
[ Ссылка ]

Wall Street Journal, China Restricts Exports of Some Graphite Products
[ Ссылка ]

Reuters, US Automakers win extension on use of Chinese graphite in EV's
[ Ссылка ]

Barrons, China Tightens Controls on Graphite. The Hunt Is On for New Supplies
[ Ссылка ]

Thumbnail image, Insurgent fighters in Mozambique from Brookings Institution

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