The Trump administration’s changes to clean energy policies in the U.S. are creating problems for graphite suppliers.
According to The Atlantic, one case is Syrah Resources, which opened a graphite processing plant in Louisiana in 2024. The company invested based on policies that supported electric vehicle markets and local production of battery materials. Those policies are now being rolled back.
The U.S. government is reducing funding programs, adding tariffs on graphite imports from Africa, and preparing to cancel tax credits for EVs. These shifts weaken the market for battery-grade graphite in the U.S., even as the government pushes for more domestic mining and processing. Experts say that cutting demand for clean technologies, like EVs, makes it hard to justify new mineral projects. Without buyers, companies may hold off on new investments.
Syrah’s plant is caught in this situation. Though tariffs on imported graphite might give it a temporary price edge, the loss of tax credits and higher equipment costs hurt its business case. The Vidalia facility was backed by a $102 million U.S. Department of Energy loan and built with the expectation of a growing EV market. It refines graphite sourced from Mozambique, a country previously targeted for deeper mineral trade ties under a U.S. strategy to diversify away from China. That strategy is now undermined by new 16% tariffs on African graphite imports.
For European graphite producers and buyers, the shift in U.S. policy may reduce global graphite demand, potentially pushing prices down and creating short-term cost advantages. At the same time, with U.S. buyers sidelined by tariffs and policy rollbacks, European firms may gain an opportunity to strengthen their relationships with African suppliers such as Mozambique and Madagascar. This may enable longer-term offtake agreements and improve supply security, especially as U.S. policy unpredictability makes it a less attractive partner.
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