New guidance from the US Department of Energy and the US Department of Treasury provides greater certainty regarding foreign entities of concern (FEOC) for the US Inflation Reduction Act’s Section 30D tax credit. The FEOC definition will foster supply diversification for critical minerals and battery components, including active anode material (AAM) products, for the North American battery and electric vehicle industry.
However, China’s dominance in global natural graphite, anode precursor, and AAM supply and the FEOC designation of a significant proportion of AAM used in the North American battery manufacturing industry will be a limited factor in the number of electric vehicles qualified for the full Section 30D tax credit in the medium-term.
Syrah’s scaled supply of vertically integrated natural graphite and AAM products offers a strong starting base to customers for non-FEOC and Section 30D-compliant critical minerals sourcing into the North American battery supply chain and simplified traceability to prove compliance. Balama is a large, low-cost source of natural graphite for any ex-China processing facility seeking ex-China input feedstock, and Vidalia is critical for scale volume of ex-China AAM.
A link to the White House Release, Treasury, DOE Release Proposed Guidance to Strengthen Domestic Supply Chains for Batteries and Electric Vehicles, Ensure the U.S. Leads the Clean Vehicle Future is here: Treasury, DOE Release Proposed Guidance to Strengthen Domestic Supply Chains for Batteries and Electric Vehicles, Ensure the U.S. Leads the Clean Vehicle Future | The White House
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