Will designating China as an “entity of concern” spur the development of US supply chains?
The Buy American provisions of the Inflation Reduction Act and Bipartisan Infrastructure Law have proven controversial in some quarters, but they are integral and necessary components of both programs. EVs require raw materials, many of which are disproportionately extracted and processed in countries that we don’t want to rely on. Thus, any comprehensive program to encourage electrification has to include strong incentives for producers to build new supply chains.
Charged asked John DeMaio, CEO of graphite producer Graphex, for his thoughts on the likely results of the administration’s latest announcement.
“The White House’s long-anticipated designation of China as a foreign entity of concern officializes what Graphex Technologies has been exhorting for years: that a secure, stable, and abundant critical mineral supply chain involves both overall expansion and diversification away from China,” DeMaio told Charged. “While this news may briefly inconvenience battery makers (and the consumers who want their $7,500 tax incentive), it will help the US to get its own supply chains up and running.”
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