US slaps 93.5% anti-dumping duty on Chinese graphite imports, escalating EV supply chain pressure

The US Department of Commerce on July 17 announced preliminary anti-dumping duties of 93.5 per cent on graphite-based anode materials imported from China, a move that significantly escalates trade tensions in the electric vehicle (EV) supply chain. The ruling comes after a months-long investigation revealed Chinese producers were selling graphite at unfairly low prices in the US market, undermining domestic manufacturers. The penalties apply to graphite anode materials with a minimum carbon purity of 90 per cent by weight, including synthetic, natural, or blended graphite—a critical component in lithium-ion EV batteries. Imports of these materials from China totalled $347.1 million in 2023, as per the Commerce Department, and nearly two-thirds of all US graphite imports originated from Chinese suppliers, according to BloombergNEF.

Total penalties now exceed 160%

This latest decision adds to a growing list of tariffs and duties imposed on Chinese graphite. In May, the Commerce Department imposed countervailing duties of 6.55 per cent for most producers, but as high as 721 per cent for specific firms like Huzhou Kaijin New Energy and Shanghai Shaosheng. When combined with the existing 25 per cent Section 301 tariffs and 30 per cent retaliatory duties, the effective import penalty now exceeds 160 per cent.

The anti-dumping and countervailing duty petitions were filed by the American Active Anode Material Producers, a coalition including firms such as Anovion Technologies, Syrah Technologies, and Novonix Anode Materials. The Commerce Department is expected to issue a final determination by December 5, 2025.

Automakers, battery suppliers push back

Major EV players, including Tesla and battery supplier Panasonic, had lobbied against the new tariffs, arguing that US producers are not yet capable of meeting the scale and quality standards required for mass production. The announcement sent Tesla shares down by 1.4 per cent on July 17.

“This move adds roughly $7 per kilowatt-hour to battery costs—nearly 20 per cent of the value of US battery tax credits,” Sam Adham, head of battery materials at CRU Group, told Bloomberg. “That could erase one to two quarters of profits for Korean battery makers operating in the US.”

The tariffs come amid increasing efforts by the US to reduce reliance on Chinese critical minerals, a concern highlighted by the International Energy Agency (IEA), which recently classified graphite as among the most supply-risk-exposed battery materials.

As Washington prioritises energy security and EV supply chain resilience, the ruling may accelerate domestic investments, but it could also raise short-term costs for automakers and slow EV adoption in the US.