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US tax on Chinese imports opens the door for Springdale graphite

Two key initiatives this week highlight the speed and decisiveness with which western economies are ramping up to secure critical mineral supply chains.

Hot on the heels of a big boost for critical minerals in Australia’s Federal Budget, the US Government has imposed hefty tariffs on Chinese graphite imports starting in 2026. By 2027, tariffs on Chinese electric vehicles will increase from 25% to 100% and vehicles that use Chinese graphite for battery components will no longer be eligible for Inflation Reduction Act tax incentives.

These announcements underscore the importance of International Graphite’s world class Springdale graphite deposit, in Western Australia, as a potential long term, secure, consistent and reliable source of graphite to help feed the western world’s lithium-ion battery supply chain.

Under the latest US regulations, Springdale graphite will be free of tariffs in the US and its customers will be eligible for Inflation Reduction Act incentives thanks to Australia’s free trade agreement with our American allies.

In this week’s Budget, the Australian Government committed $8.8 billion over the next 10 years to strengthen the critical minerals supply chain. Its ambitious Future Made in Australia plan extends beyond mining and minerals processing to include incentives designed to ignite domestic manufacturing, including batteries.

IG6 Managing Director and CEO Andrew Worland said the historic policy settings created unprecedented opportunity for the company.

“The timing of US tariffs coincides with the dates we expect to bring our Springdale mine into production. It is also the point at which world markets are expecting graphite demand to exceed supply.

“Our plan for a vertically integrated mine to market graphite business from Western Australia, fits perfectly with the goals of the US to reduce its reliance on China and identify other trusted, reliable sources of graphite.

“We have shown that Springdale has the potential to be a multi-decade, low cost operation that will produce high quality graphite concentrates specifically for lithium-ion batteries.”

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International Graphite acknowledges the Traditional Owners of Country throughout Australia, particularly the Whadjuk, Wiilman, Kaniyang and Wadjari Peoples of the Noongar Nation, and pay our respects to Elders past and present.