Investment Rating - The report provides a recommendation for the industry [5]. Core Insights - In Q2 2025, the production of finished nickel and cobalt by the company reached 3,431 tons and 389 tons respectively, showing a year-on-year increase of 1% and 14% [2]. - The net direct cash cost of nickel decreased by 8% year-on-year to $5.27 per pound [2]. - The Moa JV's mixed sulfide production decreased by 21% year-on-year to 3,238 tons due to planned acid plant shutdowns and challenging economic conditions in Cuba [2][3]. - The company anticipates a recovery plan to increase production in the second half of the year [2]. Production and Operational Performance - The Q2 2025 nickel production was impacted by a reduction in raw material supply, with third-party supplies unable to compensate for the loss [2]. - The company expects annual maintenance shutdowns to occur in September 2025 [2]. - Fertilizer production increased by 8% year-on-year to 65,207 tons due to improved equipment availability [3]. Financial Performance - The revenue from the metal business in Q2 2025 was CAD 124.7 million, down from CAD 150.6 million in Q2 2024 [8]. - Nickel revenue decreased to CAD 68.6 million, while cobalt revenue increased to CAD 15.2 million due to higher average realized prices [8]. - The overall company revenue for Q2 2025 was CAD 136 million, a 17% decrease year-on-year [12]. Expansion Plans and Strategic Development - The Moa joint venture expansion project is ongoing, with completion expected in mid-August 2025, aiming to enhance production capacity [13]. - The company is advancing its nickel-cobalt processing project, which has received funding support from Alberta's Emissions Reduction Alberta [14].

Core Points - The U.S. Department of Commerce has determined that imports of graphite from China are unfairly subsidized, imposing a preliminary anti-dumping duty of 93.5% on these imports, with a final decision expected by December 5 [1] - The new tariffs could significantly increase the cost of electric vehicle batteries, potentially raising prices by approximately $1,000 per battery [3][5] - China supplies over 90% of the world's graphite, which is critical for battery production, making the U.S. heavily reliant on Chinese imports [3][5] Group 1: Tariff Implications - The new tariffs will apply to $347.1 million worth of imported products, specifically targeting anode-grade graphite with a minimum purity of 90% by weight [1] - The effective duty could reach 160% when combined with existing tariffs, leading to increased costs for electric vehicle manufacturers [3] - The imposition of these tariffs is expected to exacerbate supply chain tensions in the global electric vehicle market [3] Group 2: Impact on Industry Players - Korean battery manufacturers face a dilemma as they seek U.S. incentives while relying on Chinese graphite, which will now incur high tariffs [8] - Companies like Tesla and Panasonic, which depend on Chinese graphite, are likely to experience increased production costs or pressure on their operations [3][8] - The U.S. government's actions reflect a strategic move to bolster domestic graphite production, similar to its approach with semiconductor restrictions against China [5]

Core Viewpoint - The U.S. Department of Commerce has determined that imports of graphite from China are unfairly subsidized, imposing a preliminary anti-dumping duty of 93.5% on anode-grade graphite imports, with a final decision expected by December 5 [1][2]. Group 1: Impact on the Industry - The new tariffs will exacerbate the global electric vehicle supply chain tensions, with the average cost of electric vehicle batteries potentially increasing by $7 per kilowatt-hour, which could negate a significant portion of the tax credits outlined in the Inflation Reduction Act [2]. - China supplies over 90% of the world's graphite, which constitutes about 95% of the anode materials for electric vehicles, leading to a potential increase of approximately $1,000 in battery prices for U.S. manufacturers [2][3]. - The U.S. imported nearly 180,000 tons of graphite products last year, with about two-thirds sourced from China, highlighting China's dominance in graphite processing capabilities [3]. Group 2: Strategic Responses - Tesla and its key battery supplier, Panasonic, have attempted to block the new tariffs, citing their reliance on Chinese graphite due to the underdevelopment of the domestic U.S. graphite industry [3]. - The U.S. government's primary aim appears to be the development of a domestic graphite manufacturing industry, as graphite is predominantly used in the aluminum electrolysis and steelmaking sectors, which consume the majority of graphite [3]. - The imposition of tariffs may lead to significant adjustments for Chinese companies, necessitating the exploration of alternative export markets, while U.S. companies may face supply chain disruptions and increased upstream costs [4].