Graphene, a one-atom-thick layer of graphite, has been hyped for its potential in super batteries, driving high valuations of graphene makers like Applied Graphene Materials and First Graphene Limited. However, commercial adoption has been slower than anticipated, leading to market corrections as expectations align with reality.

Titan Mining Corp. plans to start natural graphite production at Empire State Mines, sparking an 870% surge in shares. The US-China trade tensions have fueled the rally, with EV battery demand for graphite set to skyrocket in the coming years. The US aims to reduce dependence on Chinese graphite, imposing punitive tariffs on imports.

Northern Graphite Corporation, Syrah Resources Ltd., Nouveau Monde Graphite, and POSCO Holdings Inc. have seen share gains YTD. The US imported 180,000 metric tons of graphite in 2023, mainly from China. The International Energy Agency warns of supply chain vulnerability, urging diversification efforts amid escalating tensions with China.

Punitive tariffs on Chinese graphite could increase battery costs by $7/kWh, impacting tax credits. Major EV players like Tesla and Panasonic oppose the tariffs, citing insufficient domestic supply to meet quality and volume requirements. The ruling is expected to alter sourcing strategies for battery manufacturers in the US.

Tesla and Panasonic have lobbied against the tariffs, citing inadequate domestic supply to meet their needs. The ruling is expected to impact battery costs and sourcing strategies, accelerating discussions with manufacturers. Major EV players are pushing back against the tariffs due to concerns over domestic supply chain capabilities.

Read more at Yahoo Finance: Graphite Mining Stocks Are Flying Amid China Tensions, Battery Boom