Azzet’s Mission Critical is a weekly column that lays out the ebbs and flows around critical minerals supply chains - from pricing, production, refinement, mergers & acquisitions, to manufacturing and consumer products.
Yesterday, Donald Trump shocked world markets with a sweeping 10% tariff on all goods entering the United States, with additional levies on countries calculated on a reciprocal, ad-hoc basis.
Yet there were also nuanced exemptions to the additional levies across certain industries - particularly minerals that have been deemed strategic metals that come under the U.S. Inflation Reduction Act in high demand for our global energy transition.
These include key components of military hardware, advanced technology and clean energy infrastructure. Let’s take a look at some of the major critical minerals that made the cut and those that have been slapped with import taxes:
Excluded from tariffs
Lithium carbonate & lithium hydroxide: Key components for lithium-ion batteries. Lithium carbonate is commonly used in cost-effective LFP (lithium-iron-phosphate) batteries, while lithium hydroxide is favoured for higher energy density NMC (nickel-manganese-cobalt) batteries.
Manganese dioxide: Mined manganese ore processed into compounds for NMC battery cathodes, improving stability and performance. Serves as a cost-effective alternative to cobalt.
Cobalt: Critical for enhancing stability and energy density in NMC battery cathodes.
Natural graphite (powder/flakes): Naturally occurring graphite used in lithium-ion battery anodes due to high conductivity, enabling rapid charging and power output.
Aluminium: Lightweight, recyclable material widely utilised in EV frames, solar panel structures, and wind turbine components.
Copper: Highly conductive metal classified as a critical material for energy systems. Integral for a plethora of applications in our world, such as electrification and manufacturing, to wiring in solar panels, wind turbines, EV motors and batteries.
Facing tariffs
Nickel sulfate & nickel oxide: Core components in NMC cathodes, boosting energy storage capacity.
Manganese sulfate: Refined manganese compound (derived from tariff-exempt manganese dioxide) used in NMC battery cathodes.
Synthetic graphite: Industrially produced graphite with enhanced conductivity and durability, preferred for premium EVs and energy storage systems.
Iron phosphate: Fundamental cathode material in LFP batteries, gaining traction in EVs due to improved performance and affordability.
Neodymium: Essential rare earths component in powerful magnets that are critical to making lightweight EV motors and wind turbine generators.