Musk Fights Tariffs on Graphite From China

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Elon Musk’s Tesla Inc. is spearheading an effort to block new tariffs on graphite imports from China, pitting Donald Trump’s richest backer against the president’s favorite economic tool.

Graphite is an essential component in the lithium-ion batteries that power electric vehicles, and China makes more of it than any other country. It is currently subject to U.S. tariffs of 25%.

Yet U.S. graphite producers argue that their Chinese counterparts keep their prices artificially low. They have asked the federal government to impose much steeper tariffs, which they say would help a critical new domestic industry take root, even if it drives up costs for Tesla and other companies that build EVs in America.

On Jan. 31, the U.S. International Trade Commission voted for the Commerce Department to proceed with an investigation that could lead to tariffs on Chinese graphite of as high as 920%.

U.S. graphite producers have benefited from grants doled out by the Biden administration, which was eager to foster domestic supply chains for critical minerals to lessen the country’s dependence on China and revive its manufacturing sector.

Still, the companies say more steps are needed to level the playing field. They argue that the effect of low-cost Chinese imports is too great for them to secure the necessary financing to build the processing power …