Graphite in EV batteries creates conundrum under US climate bill - MINING.COM

Key points in my view...

EVs can qualify for a $7,500 tax credit under President Joe Biden’s climate and tax bill, as long as their batteries contain minerals extracted from or processed in a country with a free trade agreement with the US, and providing part of the components are made or assembled in North America. The measure, under the Inflation Reduction Act, kicks in next year, and content requirements get stricter after 2024.

(My take...The US has a free trade agreement with Canada...so we are good here....China does not - so in theory, this may box out EVs that qualify for the tax credit based on source materials from elsewhere)

While automakers and battery manufacturers are spending billions of dollars on new North American factories, “we have not seen that for the anode,” Bush said. Making anodes is energy intensive, it produces a lot of emissions and the future of the technology is uncertain, making it “very challenging” to work around such content requirements, according to Bush.

“On the current technology roadmap, it’s slated for potential obsolescence,” he said.

The industry is researching using lithium metal to replace graphite anodes in solid-state batteries and tapping silicon as a substitute, something Tesla Inc.’s Elon Musk talked about in the past. Until then, graphite’s presence in EV batteries will remain a challenge for US consumers looking for that tax incentive.