Commerce Targets Dumping of EV Battery Material
The U.S. Commerce Department announced it will impose preliminary anti-dumping duties of 93.5% on anode-grade graphite imported from China. The move follows an investigation that found the material, vital for electric vehicle (EV) batteries, was being sold below fair market value in the U.S.
A fact sheet obtained by Reuters confirms that all Chinese producers will face a uniform duty and cash deposit rate of 93.5%. The order impacts imports valued at $347.1 million in 2023. The material affected includes synthetic, natural, or blended anode-grade graphite with a minimum purity of 90% carbon by weight.
Parallel Anti-Subsidy Case Yields Hefty Penalties
This decision follows a separate anti-subsidy probe concluded in May, which imposed preliminary countervailing duties of 6.55% for most producers. However, two firms—Huzhou Kaijin New Energy Technology Corp and Shanghai Shaosheng Knitted Sweat—were hit with extraordinary rates of 712.03% and 721.03%, respectively.
The final anti-dumping and anti-subsidy duty determinations are scheduled to be issued by December 5, 2025. Until then, the preliminary rates will apply to Chinese shipments of the targeted graphite products.
U.S. Coalition of Producers Leads Complaint
The case was brought forward by the American Active Anode Material Producers, an ad hoc coalition of domestic graphite manufacturers. The coalition includes Anovion Technologies (New York), Syrah Technologies LLC (Louisiana), Novonix Anode Materials (Tennessee), Epsilon Advanced Materials (North Carolina), and SKI US Inc (Georgia).
These companies argue that dumped Chinese imports undercut domestic prices, making it difficult for U.S. firms to compete in a rapidly growing market driven by demand for electric vehicles and renewable energy storage.
Impact on U.S.-China Trade and EV Supply Chain
The high duty levels are expected to restrict Chinese graphite imports significantly and may lead to disruptions in the EV battery supply chain. Automakers and battery manufacturers could face higher costs if domestic producers are unable to meet demand or scale quickly.
This action also adds another layer of tension to U.S.-China trade relations, as the Biden administration continues efforts to strengthen domestic manufacturing and reduce reliance on Chinese critical minerals.
