US determines China is dumping graphite, imposes 93.5% tariff

Image source: Lianhe Zaobao Chinese Network

China is dumping graphite on US markets, and its exports of active anode materials to the US will be subject to an antidumping tariff of 93.5%, a representative from the US Commerce Department told Platts, part of S&P Global Commodity Insights, on July 17.

The ruling is the second preliminary determination in the antidumping/countervailing duty investigation by Commerce into active anode materials from China that will be followed by a final determination at the end of the year.Although the ruling is preliminary, importers of anode material will begin paying the duty even before a final determination is made.

Active anode materials that fall into this category include natural and synthetic graphite, as well as graphite within finished lithium-ion batteries. Graphite is the largest component in the anode of lithium-ion batteries used in electric vehicles and is usually a mixture of natural and synthetic materials.

AAAMP, a coalition representing North America's graphite producers, initiated a petition with the Department of Commerce in December 2024, seeking a tariff as high as 920% on the grounds that China's state subsidies and artificially low prices are undermining the establishment of the industry in the US.

AAAMP is comprised of Anovion Technologies, Syrah Technologies, NOVONIX Anode Materials, Epsilon Advanced Materials and SKI US.

Commerce is also conducting a separate countervailing duty investigation of active anode materials from China, with a preliminary decision on the case resulting in an 11.5% tariff on China's synthetic and natural graphite.

According to AAAMP calculations, the effective cumulative rate on China's active anode materials isnow 160% when adding in countervailing duty tariffs of 11.5% placed by Commerce in May, President Trump's blanket 30% tariffs on goods from China, and 25% Section 301 tariffs implemented by the US Trade Representative in 2024.

The US does not mine natural graphite, according to the US Geological Survey, and in 2024, the country relied entirely on imports to meet its graphite requirements.