Digest

The US is trying to reduce its reliance on China for batteries, a key component of the electric vehicle industry. President Biden has announced tariffs on Chinese graphite, a critical mineral for batteries, as part of a larger strategy to build up clean tech industries in the US. However, building a new battery supply chain from scratch is challenging. The episode follows the story of Westwater Resources, a company trying to establish a graphite processing plant in Alabama. They face several hurdles, including securing a wastewater treatment facility, perfecting the graphite processing technique, and securing funding. The episode highlights the complexities of building a new industry from scratch and the challenges of competing with China's dominance in the battery market. The episode also explores the economic arguments for and against tariffs, particularly the "infant industry argument" which suggests that temporary protection can help young industries grow and compete.

Outlines

00:00:00

Planet Money Introduction

This Chapter introduces the episode of Planet Money, focusing on the US's efforts to build a battery supply chain independent of China.

00:00:07

The Underdog Critical Mineral: Graphite

This Chapter delves into the importance of graphite in the battery industry, highlighting its significance as a critical mineral and the fact that almost all battery-ready graphite comes from China. The chapter also introduces John Jacobs, who works for a company involved in graphite processing, and discusses the challenges of building a domestic graphite industry.

00:01:32

The White House and Graphite Tariffs

This Chapter discusses the Biden administration's announcement of tariffs on Chinese graphite, which is part of a broader strategy to reduce reliance on China for clean tech materials. The chapter explores the potential impact of these tariffs on the US battery industry and the companies involved in graphite processing.

00:03:51

Building a Battery Industry in Alabama

This Chapter focuses on the efforts of Westwater Resources to establish a graphite processing plant in Alexander City, Alabama. The chapter highlights the challenges they face, including securing a wastewater treatment facility, perfecting the graphite processing technique, and securing funding. The chapter also explores the economic arguments for and against tariffs, particularly the "infant industry argument" which suggests that temporary protection can help young industries grow and compete.

Keywords

Q&A

• Why is the US trying to build a battery supply chain that doesn't rely on China?

  The US is trying to reduce its reliance on China for batteries because of concerns about supply chain security, job losses, and unfair competition from China's subsidized battery industry.

• What are the challenges facing Westwater Resources in building their graphite processing plant in Alabama?

  Westwater Resources faces challenges such as securing a wastewater treatment facility, perfecting the graphite processing technique, and securing funding. The episode highlights the complexities of building a new industry from scratch and the challenges of competing with China's dominance in the battery market.

• What is the "infant industry argument" and how does it apply to the US's use of tariffs on Chinese graphite?

  The "infant industry argument" is an economic argument for protecting young industries from foreign competition. The idea is that temporary protection can help these industries grow and become competitive, eventually benefiting consumers and the economy as a whole. The episode discusses the infant industry argument in the context of the US's use of tariffs to support the development of a domestic graphite processing industry.

• What are the potential benefits and drawbacks of tariffs on Chinese graphite?

  Tariffs can provide protection for domestic industries, but they can also increase prices for consumers. The episode explores the economic arguments for and against tariffs, particularly in the context of the US's efforts to build a more resilient and sustainable battery industry.

• What is the significance of graphite in the battery industry?

  Graphite is a key ingredient in lithium-ion batteries, used as an anode material. The episode highlights the importance of graphite in the battery industry and the challenges of building a domestic graphite industry in the US.

• How does China's dominance in the battery industry affect the US's efforts to build a domestic battery supply chain?

  China's dominance in the battery industry makes it difficult for the US to compete. The episode explores the challenges of competing with China's dominance in the battery market and the US's efforts to reduce its reliance on China for critical minerals.

• What are the potential implications of the US's efforts to build a domestic battery supply chain for the electric vehicle industry?

  The US's efforts to build a domestic battery supply chain could have significant implications for the electric vehicle industry, potentially leading to increased production of EVs in the US and a more resilient supply chain for critical minerals.

• What are the key takeaways from the episode about the challenges and opportunities of building a new industry from scratch?

  The episode highlights the complexities of building a new industry from scratch, including the need for infrastructure, technical expertise, and funding. It also emphasizes the importance of government support and the challenges of competing with established players in the global market.

• What are the potential implications of the US's use of tariffs on Chinese graphite for the global battery market?

  The US's use of tariffs on Chinese graphite could have significant implications for the global battery market, potentially leading to increased production of graphite in other countries and a more diversified supply chain for critical minerals.

Show Notes