What we need now is import data to find out what they're using. I'm assuming it is all medium end so the price NVX is really competing against is $3518. They don't use high end in EV's. Mainly in the digital field. I very much doubt they produce enough high end to be used in EV's. Did you notice the difference in price between high end and medium? $3152. Almost half as cheap.

This would suggest to me the Chinese are selling it for less than cost. They haven't dramatically dropped the high end price because it's a small volume market compared to EV's.

High End Artificial Graphite（≥355mah/g） Price, CNY/mt

First discharge specific capacity≥355mAh/g, First coulomb efficiency≥92%,compacted density≥1.65g/m3，Mainly used in the digital field

Mid End Artificial Graphite（350-355mah/g） Price, CNY/mt

First discharge specific capacity350-355mAh/g, First coulomb efficiency≥92%,compacted density1.6-1.65g/m3，Mainly used in EV, digital, energy storage fields

Low End Artificial Graphite（340-349mah/g） Price, CNY/mt

First discharge specific capacity340-349mAh/g, First coulomb efficiency≥90%,compacted density1.5-1.6g/m3，Mainly used in EV, digital, energy storage fields

The IRA was designed to get around not using tariffs. They were hoping the $7500 subsidy, FEOC, production tax credits etc would be enough. The problem is they stuffed up when it came to graphite. They took their eye off the ball.

I posted the below in SYR 2 days ago -

What infuriates me is this was avoidable. OEM's and battery manufactures like LG etc were handing out cash left right and centre securing lithium supplies but not 1 cent was used to secure graphite

I posted this about the graphite producers meeting Biden -

"If I was a graphite producer at the meeting, I'd be stressing my unwillingness to sign any off-take agreements to meet the OEM caveats unless I get full funding to actually produce enough AAM to meet the off-takes. If not, all you're doing is kicking the can another 2 years down the road. It has already been kicked 1 year when the graphite rules didn't start in 2024 with the cathode."

"I share the NAGA's concerns about OEMs must show meaningful progress toward having a North American supply chain in place before January 2027. I posted earlier about it. They're worried without funding all the OEM's will do is kick the can a further 2yrs down the road and we'll be in the exact same situation. Hardly a AAM plant will be in a position to supply AAM between now and Jan 2027 without funding in the next couple of months." end quote

In a nutshell, the NAGA are worried the OEM's etc will only provide lip service. What they want to provide has to be heavily scrutinised by the DOE a/ it meets the meaningful progress caveats to get the $7500 subsidy in 25/26 and b/ it's actually delivered and on time. The OEM's etc haven't shown any love in the past. Graphite producers have been knocking on their door for years and getting no where.

My concern is how bad are they all hurting financially atm to provide any funding loans. Tesla is supposed to be sitting on a large pile of cash but with Musk these days you never know.