U.S. To Impose 93.5% Anti-Dumping Levy On Chinese Graphite

The U.S. Commerce Department will impose preliminary anti-dumping duties on Chinese graphite—a key component in batteries—after concluding the imports were unfairly subsidized, Tope Alake, Gabrielle Coppola, and Annie Lee reported for Bloomberg News.

The new duties will be added to existing tariffs, bringing the effective rate to 160%.

A trade association representing U.S. graphite producers had petitioned two federal agencies in December to investigate potential violations of anti-dumping laws by Chinese firms.

The new duties will be added to existing tariffs, bringing the effective rate to 160%, according to the American Active Anode Material Producers, the group that filed the complaint.

The Commerce Department released its preliminary determination on the 93.5% anti-dumping duties last Thursday and said a final decision will be announced by December 5.

Shares of battery suppliers dipped following the announcement, while producers in North America and the Asia-Pacific region rallied.

“Commerce’s determination proves that China is selling AAM at less than fair value into the domestic market,” said Erik Olson, a spokesperson for the anode producers' group.

Syrah Resources Ltd., an Australian graphite and battery anode company, surged as much as 38%—its biggest jump since October 2023. South Korea’s Posco Future M Co., a major battery material producer, rose 24%.

The tariff could pose a significant setback for Asian manufacturers.

“That basically wipes out profits for one or two entire quarters for the Korean battery makers,” said Sam Adham, head of battery materials at consultancy CRU Group. Ted Mann, Doug Alexander, and Srinidhi Ragavendran also contributed to the report.