Weekly Summary
- This week in the graphite industry, all eyes have been on the U.S. and what Trump 2.0 means for graphite. Early indications signal that tariffs are going to play a significant part in this administration, although it is still early days. Moving to key announcements from various companies:NOVONIXreported that Dr. Chris Burns is stepping down as CEO. Meanwhile,International Graphite (ASX:IG6)shared a positive update on the status of its current grants obtained from the Western Australian Government andEcoGraf Limited (ASX:EGR, FSE:FMK)provided a development update on their Epanko project.
- Turning to the wider market, President Trump has revoked a Biden-era goal for 50% of new U.S. vehicle sales to be electric by 2030, which has introduced a layer of uncertainty around future EV subsidies and policies in the U.S. Meanwhile, in Europe, German Chancellor Olaf Scholz and EU executive Teresa Ribera have disclosed plans at the World Economic Forum in Davos for a pan-European subsidy program aimed at boosting the competitive edge of European car manufacturers against global rivals. This initiative seeks to integrate efforts across EU member states, enabling a more unified and effective approach to supporting the EV market, which continues to face demand challenges.
Key Updates from Graphite Companies
- TSXV:NEO Battery Materials:NEO Battery Materials to Establish Canada's First Silicon Anode Facility on 8 Acres in Windsor, Ontario
- ASX:Talga Group:Government decision to adopt detailed plan for graphite mine
- ASX:Volt Resources Limited:RiverFort Global Capital Ltd Loan Repaid
- ASX:Evion Group (ASX:EVG):Madagascan Govt commitment to mining industry development
- ASX:EcoGraf Limited (ASX:EGR, FSE:FMK):Epanko Development Update
- ASX:International Graphite (ASX:IG6):Financial Agreement signed releasing $2M grant
- ASX:Volt Resources Limited:Additional Information – Announcement 20 January 2025
- ASX:Magnis Energy Technologies:Long Term Suspended Entities
- ASX:Mineral Commodities Ltd:Long Term Suspended Entities
- ASX:Sovereign Metals:Kasiya – Optimised PFS Results
- TSXV:South Star Battery Metals:South Star Battery Metals Announces Exercise of Earn-in and Acquisition of 100% of the BamaStar Graphite Project in Coosa County, Alabama
- ASX:NOVONIX:NOVONIX Announces Transition of Chief Executive Officer
Top 5 Gainers of the week
- Westwater Resources: 47%
- Emergent Metals Corp.: 25%
- Black Swan Graphene Inc: 19%
- NEO Battery Materials: 17%
- Talga Group: 13%
- NOVONIX: -15%
- Evolution Energy Minerals : -14%
- Greenwing Resources: -14%
- Syrah Resources Ltd: -12%
- Northern Graphite: -9%
Trump says he’s considering a 10% tariff on China beginning as soon as Feb. 1
With President Trump considering tariffs ranging from 10-25% on all goods imported from China to the USA starting 1 February, we are reminded of the risks associated with relying heavily on a single country for critical minerals. These new tariffs, alongside potential additional tariffs from the US graphite trade case, are turning 2025 into a key year for the graphite sector.
AI & Graphite
The U.S., under the Stargate initiative, is investing $500 billion in AI data centers to stay ahead in the global AI race. What does this mean for graphite? AsThe Oregon Groupstates, "batteries are a big part of the game" in powering these data centers. While indirect compared to other materials, graphite still plays a role in components such as cooling systems and uninterruptible power supply technologies, both essential for data center operations. So with the significant investments being made in AI data centers, the demand for graphite is expected to rise alongside their growth.
General EV Market News
Trump revokes Biden order that had set 50% electric vehicles target for 2030
On his first day back in office, President Donald Trump revoked a Biden executive order that had set a goal for 50% of new vehicles sold in 2030 to be electric. This move is part of a broader effort to eliminate federal support for electric vehicles and to dismantle various environmental protections established by the previous administration. Trump argued that such policies undermine American industries while other countries, notably China, continue to pollute. The revoked policies had included support from major automakers and were part of Biden's broader climate strategy aimed at reducing emissions and encouraging clean energy innovations. Critics, such as Dan Becker from the Center for Biological Diversity, contend that rolling back these measures will lead to increased pollution, higher costs for consumers, and decreased competitive edge for the U.S. in the global market.
EU weighs bloc-wide EV subsidies amid weak demand
The European Union is considering implementing a bloc-wide subsidy program for electric vehicles to boost the domestic car industry, according to German Chancellor Olaf Scholz and Teresa Ribera, executive vice president of the European Commission. The discussions, which took place at the World Economic Forum in Davos, aim to find an alternative to national subsidies and address the lagging demand for EVs across Europe. The proposed measures focus on updating carmaker capacities to meet global demands without altering the 2035 deadline to end sales of internal combustion engines. This initiative comes as a response to weak EV demand and the need to maintain competitiveness against international manufacturers.
