Mon Dec 09 07:08:31 UTC 2024: ## China’s Graphite Export Restrictions Could Boost US Manufacturers

**Mumbai, India** – China’s announcement of stricter export reviews for graphite bound for the United States is expected to impact the US graphite market and benefit domestic manufacturers, according to ICICI Securities. The move, seen as a response to rising geopolitical tensions and potential US tariffs on Chinese goods, is anticipated to limit graphite availability in the US.

This presents a significant opportunity for US graphite electrode producers, particularly HEG Limited, a company where exports constitute over 70% of revenue, with the US market accounting for approximately 17%. The Indian government’s proposed ₹9,000 crore Production-Linked Incentive (PLI) scheme for electric battery components further strengthens HEG’s position, as the company plans to enter the graphite anode production market—a key component in lithium-ion batteries.

While HEG’s stock price has already reflected these developments, ICICI Securities notes limited potential for further significant upside at current levels. The firm emphasizes that this information is for client consumption only and should not be considered investment advice. All investments carry inherent risks.

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