The U.S. has announced a preliminary anti-dumping tariff of 93.5% on imports of anode-grade graphite from China, a critical material used in electric vehicle batteries.
Introduction of Tariffs
The U.S. Department of Commerce has imposed a preliminary tariff of 93.5% on anode-grade graphite imported from China. This tariff is set to take effect on December 5, 2025, and comes in response to investigations prompted by American Active Anode Material Producers, who identified market disruption caused by Chinese graphite being sold at unfairly low prices due to state subsidies. When combined with existing tariffs, the effective rate could reach 160%.
Market Reaction and Producers
Following the news of the tariffs, shares of non-Chinese graphite producers surged. Australian-listed Syrah Resources, the largest non-Chinese graphite miner, saw a 22% increase, while Canada's Nouveau Monde Graphite jumped 26%. Other companies like Novonix and Posco Future M also reported gains of 15% and 20%, respectively.
Opinion of Major Companies
While some have hailed the tariffs as a positive development, companies such as Tesla and Panasonic have opposed them. Tesla noted in a submission to the government that U.S. graphite producers have yet to demonstrate the technical ability to produce commercial quantities of the mineral at the necessary quality. This stance may lead to increased costs for American electric vehicle manufacturers, translating to higher prices for consumers.
The implementation of anti-dumping tariffs on Chinese graphite raises critical questions about the U.S. dependency on Chinese technology in the production of batteries. The uncertainty in the market may lead to shifts in strategies among electric vehicle manufacturers.
