US Slams Chinese Graphite Imports with 93.5% Preliminary Anti-Dumping Tariff

The U.S. Department of Commerce has imposed a preliminary anti-dumping duty of 93.5% on graphite imports from China, a move that could significantly disrupt electric vehicle (EV) supply chains and escalate trade tensions in the global battery sector.

The decision comes after a petition filed in December by the U.S. Active Anode Material Producers Coalition, which alleged that Chinese manufacturers were selling graphite at unfairly subsidized prices. When combined with existing duties, the total effective tariff could reach 160%, according to the coalition.

The ruling targets graphite, a critical raw material used in the anodes of lithium-ion batteries, which power everything from EVs to grid-scale energy storage systems.

The decision is likely to ripple across the already strained global EV supply chain. Beijing has imposed its own export restrictions on several key battery-related materials and technologies in recent months, amplifying the geopolitical and commercial stakes.

Shares of North American graphite producers surged in response, while battery suppliers saw their stocks fall. The Department of Commerce will issue a final decision by December 5.

“The Commerce Department’s ruling confirms that China has been dumping active anode materials (AAM) into the U.S. at unfair prices,” said Eric Olson, spokesperson for the producers’ coalition.

Executives at Tesla and its battery partner Panasonic had lobbied against the tariffs, arguing that domestic production capacity and quality are insufficient to meet current demand. Tesla’s stock dipped 0.7% following the announcement.

Sam Adham, head of battery materials at consultancy CRU Group, warned that the tariff could add up to $7 per kilowatt-hour to EV battery costs—effectively erasing up to 20% of tax incentives under the Inflation Reduction Act, which remains in place under President Trump’s 2025 budget.

“Such cost hikes could wipe out an entire quarter’s profit for some Korean battery manufacturers,” Adham noted.

China currently controls the majority of global graphite processing capacity. The International Energy Agency (IEA) has named graphite as one of the most supply chain-vulnerable materials, urging a diversification of sources in a May 2025 report.

The U.S. imported approximately 180,000 metric tons of graphite in 2024, with two-thirds sourced from China, according to BloombergNEF. The IEA forecasts that graphite will remain the dominant anode material in lithium-ion batteries at least through 2030, despite early signs of silicon adoption.

The tariff announcement was welcomed by domestic producers. Westwater Resources, which is building a graphite processing plant in Alabama, called the decision “a catalyst for accelerating U.S. production.”

The company, which has supply agreements with Stellantis and South Korea’s SK On, operates a pilot facility producing 12,500 metric tons annually, with plans to scale to 50,000 tons per year by 2028. Westwater’s stock jumped 15% on Thursday.

Canadian firms Nouveau Monde and Northern Graphite also saw shares climb following the announcement.

Analysts at Roth Capital Partners warned the tariffs could reshape the cost structure of battery firms such as Fluence Energy and Enphase Energy, whose shares fell 0.4% and 0.7% respectively.

While tax credits for energy storage projects remain intact under Trump’s 2025 budget, Treasury Department rules restricting the use of Chinese cells are complicating compliance, potentially slowing down energy transition projects.