Graphite Supply Chain Compliance

Graphite is the primary anode material in lithium-ion batteries. China dominates global graphite production (approximately 65% of natural graphite) and processing (approximately 90% of battery-grade graphite). Graphite is designated as a critical mineral by the EU, US, UK, Canada, Australia, and Japan.

IRA FEOC Restrictions

From 2025, the IRA's Foreign Entity of Concern (FEOC) restrictions apply to graphite in EV batteries eligible for the Clean Vehicle Tax Credit. EVs are ineligible for the tax credit if any critical mineral (including graphite) was extracted, processed, or recycled by a FEOC. This effectively restricts the use of Chinese-processed graphite in EV batteries sold in the US.