NEW YORK – The U.S. has finalized steep new tariff rates for imports from anode-grade graphite from China after the Commerce Department concluded that the material, a key ingredient in battery manufacturing, was being sold in the U.S at less than a fair market price.
The government said it will set a 93.5% antidumping duty and a 67% countervailing duty on the active anode material. The result of the Commerce Department’s investigation raises the countervailing duty on graphite imports from its preliminary rate of 3%, but represents a sharp reduction for two companies that had specifically been subject to duties of over 700%.
Countervailing duties are imposed when a country determines that an import is receiving unfair subsidies from the government in its home market.The International Trade Commission, a U.S. body, is expected to vote on and impose the duties in March. When finalized, the tariffs will affect imports that were valued at $347 million in 2023, according to the Commerce Department.
The petitioner for the antidumping and anti-subsidy cases is American Active Anode Material Producers, a group that includes Anovion Technologies, Syrah Technologies, SKI US, Episol Advanced Materials and Novonix Anode Materials.
“These determinations represent a meaningful step toward restoring fair competition in the U.S. anode materials market,” said Mike O’Kronley, CEO of Novonix, which is scaling up production of synthetic graphite in Tennessee.
“By addressing longstanding trade distortions, these measures strengthen the foundation for domestic production of critical battery materials, accelerate investment in U.S. manufacturing, and support the creation of high-quality advanced manufacturing jobs.”
Chinese companies account for more than 85% of the world’s supply of graphite and 96% of the higher-quality battery-grade form of the material. Global demand for graphite has risen sharply as lithium-ion battery makers churn out products to meet growing power usage. Battery manufacturers in the U.S., such as South Korea’s LG Energy, still rely on imported graphite for anode materials used in their cells.
The latest determination by the Commerce Department is separate from the so-called reciprocal tariffs, a sweeping list of duties imposed by the administration of President Donald Trump on a wide range of U.S. trading partners. Those could be struck down by the Supreme Court later this year, while the antidumping and countervailing duties give the government another avenue to put up trade barriers. Other options include national security tariffs for a wide range of products including critical minerals. The government says tariffs are key to revitalizing the country’s industrial base and manufacturing sector.
The U.S. is also trying to strengthen its domestic clean energy supply chain and offset its dependence on Chinese companies. On Thursday, the Treasury Department released guidelines clarifying restrictions on foreign entities of concern laid out in the “One Big Beautiful Bill” tax cut and spending legislation. “Foreign entity of concern” is a term primarily aimed at China but which also includes Iran, North Korea and Russia.
Mike Carr, executive director of the SEMA Coalition, a solar manufacturing trade body, said, “Additional clarity will help advance the urgent task of de-risking America’s energy supply chains from Chinese influence.”
