A US trade investigation into Chinese graphite anode materials ended without tariffs this month after the US International Trade Commission (ITC) ruled that imports from China were not harming the growth of the domestic industry.
one in Final vote released on 12 MarchThe Commission determined that imports of graphite active anode material (AAM) from China “did not materially injure or threaten the establishment of the U.S. domestic industry,” meaning that the anti-dumping and countervailing duties identified by Commerce would not take effect.
The decision ends a trade dispute that began in December 2024 when the American Active Anode Material Producers Alliance (AAAMP) filed a lawsuit accusing Chinese suppliers of selling graphite anodes at unfairly low prices and benefiting from state subsidies.
The decision blocks tariffs proposed by the U.S. Commerce Department earlier this year and removes the threat of tariffs that could exceed 160 percent on some Chinese graphite imports.
Graphite anodes are a key component in lithium-ion batteries used in electric vehicles and energy storage systems. This material is the largest component in lithium-ion battery anodes by weight and is considered essential to the growing global battery industry.
business investigation timeline
In January 2025, the Commerce Department initiated an anti-dumping and countervailing duty investigation into imports of graphite active anode material from China. Preliminary findings later that year concluded that Chinese producers had received subsidies and were selling ingredients at unfair prices.
In May 2025, Commerce raised the initial countervailing duty from 712.03 percent to 721.03 percent for some companies, with a separate rate of 6.55 percent applied for other exporters.
Two months later, Commerce imposed preliminary anti-dumping duty of 93.50 percent on individually investigated companies and 102.72 percent on other Chinese exporters.
The Department reaffirmed those findings in its final determination dated February 11, 2026.
Under the final commerce ruling, the anti-dumping duty remained unchanged at 93.50 percent for the investigated companies and 102.72 percent for other exporters. The countervailing duty was set at around 66.82 per cent to 66.86 per cent.
Combined, these measures will result in tariffs of approximately 160 percent on some imports and approximately 170 percent for other exporters.
Industry reactions
Domestic producers seeking trade protection expressed disappointment at the outcome.
“This result is disappointing for domestic producers who were seeking trade relief to create a more level playing field with their Chinese competitors,” said Eric Olson, a spokesman for AAAMP. In a recent statement.
Olson said the investigation revealed the impact of Chinese subsidies on the global graphite market.
“The evidence presented during the investigation made one thing clear: China’s graphite industry is heavily subsidized and capable of manipulating global markets in a way that makes it extremely difficult for domestic producers to compete. That cannot be debated.”
Canadian graphite producer Northern Graphite (TSXV:NGC, OTCQB:NGPHF), which is involved in efforts to build a western battery material supply chain, also reacted to the decision.
“Although we are disappointed with the outcome of this case, it is important to recognize that the growth of the western graphite industry is being supported by a number of policy initiatives and industry investments.” Said CEO Hughes Jacquemin.
Graphite is considered one of the most important battery materials due to its role in lithium-ion anodes. Every electric vehicle battery typically contains significant amounts of graphite in both natural and synthetic forms.
Despite its importance, the US is currently heavily dependent on imports for graphite supplies.
according to US Geological SurveyThe country does not mine natural graphite domestically and has historically relied entirely on imports to meet demand.
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Securities Disclosure: I, Gian Liguid, do not have any direct investment interest in any of the companies mentioned in this article.
