The U.S. Department of Commerce investigation found that China’s anode-grade graphite (a key ingredient in battery manufacturing) is being sold in the U.S. at prices below fair market value. Novonix, a graphite materials company in Tennessee, confirmed on Thursday (February 12th) that the Commerce Department has decided to impose a 93.5% anti-dumping duty and a 67% countervailing duty on imported graphite from China.
In March of this year, the U.S. International Trade Commission is expected to vote on and ultimately implement the Commerce Department’s decision. According to reports from “Nikkei News”, the Commerce Department stated that once the tariffs are finalized, they will impact imported goods worth $347 million in 2023. The new tariffs apply to negative graphite materials as defined by the Commerce Department, including synthetic and natural graphite products used in lithium-ion batteries and composite materials.
The American Active Anode Material Producers Association, which includes members like Anovion Technologies, Syrah Technologies, SKI US, Episol Advanced Materials, and Novonix Anode Materials, initiated the anti-dumping and countervailing duty lawsuits.
Mike O’Kronley, CEO of Novonix, stated that this move is an important step in restoring fair competition in the U.S. negative material market, addressing long-standing trade distortions. He believes it will strengthen the domestic production base of critical battery materials, accelerate investment in U.S. manufacturing, and support the creation of high-quality advanced manufacturing job opportunities.
Novonix possesses the most advanced synthetic graphite production capability in North America and is currently expanding high-performance synthetic graphite production domestically in the U.S., gaining a strategic advantage to provide secure material supply support to American customers.
Currently, over 85% of the world’s graphite supply comes from China, with high-quality battery-grade graphite accounting for as much as 96% of the supply. With increasing demand from lithium-ion battery manufacturers, global graphite demand is sharply rising. U.S. battery manufacturers, like LG Energy from South Korea, mainly rely on imported graphite for battery negative materials.
The Commerce Department’s action is unrelated to the tariff policies of the Trump administration. The 25% tariff imposed on advanced anode materials from China under the 1974 Trade Act and the 20% tariff under the International Emergency Economic Powers Act (IEEPA) remain unchanged.
The Trump administration’s tariff policies will face a Supreme Court ruling later this year, with anti-dumping duties and countervailing duties providing another tariff avenue for the government. Other measures include imposing national security tariffs on a range of products, including key minerals.
The Trump administration has stated that tariffs are crucial to revitalizing the national industrial base and manufacturing sector. At the same time, efforts are being made to strengthen the domestic clean energy supply chain and reduce dependence on Chinese companies. On Thursday (February 12th), the U.S. Treasury Department issued the One Big Beautiful Bill Act in the tax and spending bill, which includes restrictions on “foreign entities of concern,” primarily targeting China, Iran, North Korea, and Russia.