The news is confirmed: the US is planning to impose an additional 93.5% tariff on graphite imported from China, a key raw material used in EV batteries. This would come on top of an existing 66.5% duty, pushing the total tariff level to over 160%.
This move is part of a wider effort to reduce reliance on Chinese materials, but it could have big consequences for any battery manufacturer that still imports graphite into the US.
What’s the Impact on Microvast?
At this stage, it’s not an immediate concern for Microvast (MVST). Most of its battery production happens outside the US, including facilities in China and Germany. That means the new tariffs won’t directly hit current operations.
However, it does raise a few flags for the future.
Microvast has been working on building up its Clarksville, Tennessee facility, which is aimed at expanding battery cell manufacturing in the US. If the company planned to import graphite from China to supply this site, those costs just got a lot higher.
So while this won’t affect day-to-day operations, it could increase the long-term cost of scaling in the US, especially if domestic alternatives aren’t ready.
A Headwind for Competitors?
Interestingly, this could actually benefit Microvast in the short term.
Some of its competitors – including Tesla, Panasonic, LG Energy Solution, and SK On – have major battery manufacturing operations already running in the US. Many of these rely heavily on Chinese graphite, and finding reliable alternatives won’t happen overnight.
That means these firms could face:
- Much higher raw material costs
- Margin pressure
- Delays in scaling production
By contrast, Microvast’s global supply chain gives it more flexibility and room to adjust.
Final Thoughts
The US pushing forward with a 93.5% tariff on Chinese graphite is a clear sign of shifting supply chain priorities. For Microvast, it’s a reminder that future US-based manufacturing could become more expensive—but also that the company is better positioned than some of its competitors.
With production still largely outside the US, Microvast may be able to sidestep the worst of the impact for now. And as other players scramble to source non-Chinese materials, Microvast might actually come out ahead—especially if it can secure supply chain solutions early.
📌 Source: Bloomberg – US Set to Impose 93.5% Tariff on Key Battery Material From China