The US Commerce Department announced on Thursday that it will impose a steep 93.5% anti-dumping tariff on anode-grade graphite imported from China. Anode-grade graphite is an important material used in making batteries for electric vehicles (EVs). The decision came after the department found that Chinese companies were selling this graphite in the US at prices lower than fair market value.
According to a fact sheet reviewed by Reuters, the 93.5% duty applies across the board to all Chinese producers of this type of graphite. These graphite imports were worth around $347 million in 2023 alone.
The affected graphite is defined as having a carbon purity of at least 90% by weight. It can be natural, synthetic, or a blend of both. These materials are used specifically in battery anodes, the part of a battery that stores and releases energy.
A separate investigation into government subsidies for Chinese graphite producers is also underway. In that case, the Commerce Department issued a preliminary ruling in May, setting countervailing duties of 6.55% for most producers. However, some companies—such as Huzhou Kaijin New Energy Technology Corp and Shanghai Shaosheng—were hit with massive duties of over 700%.
Final decisions on both the anti-dumping and anti-subsidy tariffs are expected by December 5, 2025.
US BATTERY MAKERS SEEK PROTECTION
The request for the duties was made by a group called the American Active Anode Material Producers. This coalition includes several US-based companies like Anovion Technologies in New York, Syrah Technologies in Louisiana, Novonix Anode Materials in Tennessee, Epsilon Advanced Materials in North Carolina, and SKI US Inc in Georgia.
These companies argue that Chinese firms are flooding the market with cheap graphite, making it harder for American businesses to compete. The tariffs are meant to level the playing field and protect US jobs and production capacity.
“Dumping graphite at unfair prices hurts American manufacturers and weakens our domestic battery supply chain,” said a spokesperson for one of the petitioning companies. “This step by the Commerce Department is a crucial move toward securing the future of clean energy in the US.”
GRAPHITE SEEN AS HIGH-RISK MATERIAL
Graphite is essential in producing anodes for lithium-ion batteries, the type commonly used in EVs. The US imported around 180,000 metric tons of graphite in 2023, with nearly two-thirds of it coming from China, according to BloombergNEF.
China currently dominates the global graphite market, especially in processing capacity. The International Energy Agency (IEA) recently warned that graphite is among the raw materials most at risk of supply disruption. The IEA called for urgent efforts to diversify sources of graphite to avoid over-dependence on any single country.
Despite ongoing efforts to develop alternative materials, graphite is expected to remain the main anode material for lithium-ion batteries until at least 2030. After that, silicon may start gaining more market share, the IEA noted in a May report.
– Ends
Tune In