[Asia Economy Reporter Kwon Jaehee] U.S. electric vehicle manufacturer Tesla has once again requested the U.S. administration to revoke the 25% tariff imposed on Chinese graphite. Graphite is a key material for the cathode of lithium-ion batteries used in electric vehicles. SK Innovation, a Korean company engaged in the battery business in the U.S., also expressed a similar position, supporting Tesla.
According to CNBC on the 2nd (local time), Tesla reportedly submitted petitions three times on the same day to the U.S. Trade Representative (USTR) requesting exemption from the 25% tariff on Chinese graphite.
The day was the deadline for submitting official comments to the USTR. Since the USTR hinted at imposing tariffs on Chinese imports in October, a total of 2,024 petitions had been received by this day.
In the petition, Tesla stated, "Only mainland China can supply the amount of graphite needed to manufacture batteries in the U.S. in powder or flake form," and "After investigating artificial graphite suppliers worldwide, including the U.S., it was concluded that no company currently has the capability to produce artificial graphite that meets Tesla’s specifications and capacity."
SK Innovation, which operates its battery business in the U.S., also requested an extension of the tariff exemption on Chinese graphite through its U.S. subsidiary SK Battery America on the same day.
SK Innovation stated, "The economic effect of the tariff exemption on Chinese graphite amounts to $11.4 billion," adding, "This allows manufacturing high-quality electric vehicle batteries at competitive prices and supports American households by creating full-time jobs."
According to Resource World, it was found that hybrid electric vehicles use approximately 10 kg of graphite on average, while fully electric vehicles use about 100 kg of graphite.
CNBC reported, "With a flood of industry petitions, the Joe Biden administration may consider reinstating tariff exemptions not only for the 25% tariff on artificial graphite imported from China but also for other materials and components."
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