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Yahoo
17 hours ago
- Business
- Yahoo
US preps 93.5% tariff on graphite from China
This story was originally published on Supply Chain Dive. To receive daily news and insights, subscribe to our free daily Supply Chain Dive newsletter. The U.S. is planning to implement a 93.5% tariff on graphite imports from China, the Commerce Department said Thursday. The rate was set based on the preliminary findings of an antidumping duty investigation initiated by the department in January. The department is also conducting a parallel countervailing duty investigation related to graphite from China. Preliminary findings from that investigation call for an 11.58% tariff on the material, per a July Federal Register filing. Final determinations from each probe will be announced by Dec. 5, the department said. The tariff rates may change in the final ruling, according to a Commerce Department fact sheet. The petition was introduced in December 2024 by the American Active Anode Material Producers, a trade group representing domestic graphite producers, alleging imports from China were benefiting from 'countervailable subsidies' and stymieing the growth of U.S. industry, per a January Federal Register filing. 'This is an important ruling for North American graphite producers. Commerce's determination proves that China is selling [active anode material] at less than fair value into the domestic market,' said Erik Olson, a spokesperson for the group, in a Thursday press release. 'Dumping is a malicious trade practice used by China to undercut competition and wield geopolitical influence. It is all made possible by a concerted combination of massive subsidies and other state-sponsored policies.' China is the world's largest supplier of graphite, accounting for 78% of worldwide production in 2024, per a January report from the U.S. Geological Survey. The U.S. imported roughly $375.1 million worth of graphite from China in 2024, according to data from the U.S. International Trade Commission. China also accounted for 67.6% of all natural graphite imports to the U.S. the same year, while supplying 59.8% of other graphite-related products, such as artificial and colloidal forms of the material. Duties on graphite imports from China would further build on the Trump administration's push to boost domestic critical mineral supplies. The Commerce Department in April began a Section 232 investigation into the importation of critical minerals such as cobalt, lithium, graphite and nickel. Trump has also ordered similar probes of semiconductors and pharmaceuticals. Previous Section 232 investigations have resulted in tariffs on imports of materials such as steel and aluminum.
Yahoo
4 days ago
- Business
- Yahoo
Battery-Material Producer Shares Rise as U.S. Set to Tariff Chinese Graphite
Shares of some Asia-Pacific battery-material producers rose sharply Friday, after the U.S. moved to impose hefty duties on graphite—a key component of battery anodes—imported from China. The U.S. Commerce Department will impose preliminary anti-dumping duties of 93.5% on Chinese graphite imports, after determining the materials were unfairly subsidized, according to a statement posted online late Thursday by the American Active Anode Material Producers. CBS to End 'Late Show' in May, Concluding Decadeslong Run How Sam Altman Outfoxed Elon Musk to Become Trump's AI Buddy A Family Feud Is Rocking One of the World's Richest Hotel Dynasties Railroad Operator Union Pacific Exploring Deal for Norfolk Southern FedEx Technology Chief Departs After Internal Probe Into Unit He Oversaw The trade group, which had complained about Chinese companies' alleged violations of U.S. anti-dumping laws, said the total effective tariff on Chinese active anode material now stands at 160%, accounting for all relevant duties imposed to date. 'Dumping is a malicious trade practice used by China to undercut competition and wield geopolitical influence,' AAAMP spokesperson Erik Olson said in the statement. 'It is all made possible by a concerted combination of massive subsidies and other state-sponsored policies.' Asked about Beijing's response to the graphite anti-dumping duties at a press briefing, the spokesperson for China's Ministry of Foreign Affairs said that was a matter for the relevant authorities. Lin Jian then restated Beijing's stance on China-U.S. trade collaboration. 'What I want to stress here is that China-U.S. economic and trade cooperation is, by nature, mutually beneficial. We hope the U.S. will genuinely adhere to market economy principles and work to maintain the sound and stable development of China-U.S. trade relationship,' the spokesperson said. While such anti-dumping measures are primarily aimed at protecting U.S. industries, market watchers say they are also likely to benefit non-Chinese competitors abroad, as U.S. buyers seek alternative suppliers amid growing concerns over supply-chain resilience. In South Korea, the news sparked a rally among battery-material stocks. Posco Future M, an affiliate of steelmaker Posco Holdings, jumped 20% on the day. The company, which last month claimed to have secured a China-free cathode supply chain following the completion of a new precursor plant in South Korea, led the sector's gains. Smaller producers PI Advanced Materials and L&F climbed 15% and 13%, respectively. Shares of battery-material suppliers rose in Australia too. Syrah Resources led the charge, jumping 26%. Renascor gained 18% and Talga was 10% higher. Battery-tech firm Novonix, which operates a synthetic graphite production facility in North America, gained 16%. 'The decision today underscores the strategic importance of building a domestic supply chain for critical minerals, including synthetic graphite, in North America,' Michael O'Kronley, chief executive of Novonix, said in a statement. He said the ruling validates Novonix's business strategy and supports customers' efforts to locally source critical battery materials and components. The company plans to significantly ramp up U.S. production, he added. In a post on X, Renascor said the U.S. move may represent the strongest support yet for non-China supply chains for graphite and anode materials. Write to Kwanwoo Jun at The Global Risks That Come With the Loss of an Independent Fed China Threatens to Block Panama Ports Deal Unless Its Shipping Giant Is Part of It House Passes Crypto Bills After Trump Rallies Republicans Senator Warren Has a New Target on Wall Street: Private Credit FDA Authorizes Juul's E-Cigarettes After Ban Nearly Bankrupted Firm Sign in to access your portfolio
Mint
5 days ago
- Business
- Mint
US Set to Impose 93.5% Duty on China Battery Material
The US Commerce Department imposed preliminary anti-dumping duties of 93.5% on Chinese imports of graphite, a key battery component, after concluding the materials had been unfairly subsidized. A trade association representing US graphite producers in December filed petitions with two federal agencies, asking for investigations into whether Chinese companies were violating anti-dumping laws. The new duties will add to existing rates making the effective tariff 160%, according to the American Active Anode Material Producers, the trade group that filed the complaint. The anti-dumping duty on graphite is set to increase tensions along the global electric-vehicle supply chain that's already facing Beijing's export controls of some critical minerals and battery technology. Battery supplier shares slipped while North American graphite producers soared. 'Commerce's determination proves that China is selling AAM at less than fair value into the domestic market,' Erik Olson, a spokesperson for the anode producers trade group, said in a statement. The tariff would be a blow to battery manufacturers, said Sam Adham, head of battery materials at consultancy CRU Group. A 160% tariff equates to $7 per kilowatt-hour added cost to an average EV battery cell, or one fifth of the battery manufacturing tax credits that originated in the Inflation Reduction Act and survived President Trump's budget bill, he said. 'That basically wipes out profits for one or two entire quarters for the Korean battery makers,' Adham said. Tesla Inc. and its key battery supplier, Japan's Panasonic Inc., were among companies pushing to block the new tariffs, arguing that they rely on Chinese graphite imports because the domestic industry hasn't developed enough to meet the quality standards and volume that the carmaker requires. Tesla shares fell as much as 0.7% Thursday. Graphite is a key raw material used to make anodes of the batteries, and nearly 180,000 metric tons of graphite products were imported into the US last year, with about two-thirds of these deliveries coming from China, according to BloombergNEF. China dominates the processing capacity of graphite, with the International Energy Agency calling the material one of the most exposed to potential supply risks and 'requiring urgent efforts for diversification,' according to a report in May. Graphite is expected to remain the most common anode material for all types of lithium-ion batteries in the medium term, according to the IEA, with silicon only expected to begin eating into its market share from 2030. The Commerce Department issued the preliminary determination affirming the anti-dumping duties in a document Thursday, and said the final determination should be announced by Dec. 5. The tariff ruling 'provides the policy clarity and market signals needed to accelerate domestic graphite production,' said Jon Jacobs, chief commercial officer at Westwater Resources Inc., which is building a graphite plant in Alabama. Westwater, which has agreements with Jeep-owner Stellantis NV and South Korea's SK On Co., will have 12,500 metric tons of production capacity when its first phase comes online next year, with plans to expand capacity to 50,000 tons annually by 2028, Jacobs said. Westwater rose 15% on Thursday. Canadian graphite firms Nouveau Monde Graphite Inc. and Northern Graphite Corp. also surged on the tariff news. The anti-dumping rate determination 'could impact the cost structure for battery suppliers' like Fluence Energy Inc. and Enphase Energy Inc., analysts at Roth Capital Partners said in a note Wednesday. Fluence shares closed lower by 0.4% while Enphase dropped 0.7%. Additional duties on batteries will add to pressures facing the renewable industry. While energy storage retained key tax incentives in President Donald Trump's budget bill, Treasury Department rules restricting the use of Chinese cells complicates compliance for many developers. Supply chain risks and costs will slow the pace of storage growth on the US grid, according to Wood Mackenzie. With assistance from Ted Mann and Doug Alexander.
Business Times
5 days ago
- Automotive
- Business Times
US set to impose 93.5% duty on China battery material
[NEW YORK] The US Commerce Department imposed preliminary anti-dumping duties of 93.5 per cent on Chinese imports of graphite, a key battery component, after concluding the materials had been unfairly subsidised. A trade association representing US graphite producers in December filed petitions with two federal agencies, asking for investigations into whether Chinese companies were violating anti-dumping laws. The new duties will add to existing rates, making the effective tariff 160 per cent, according to the American Active Anode Material Producers, the trade group that filed the complaint. The anti-dumping duty on graphite is set to increase tensions along the global electric-vehicle (EV) supply chain that's already facing Beijing's export controls of some critical minerals and battery technology. Battery supplier shares slipped while North American graphite producers soared. 'Commerce's determination proves that China is selling AAM at less than fair value into the domestic market,' Erik Olson, a spokesperson for the anode producers trade group, said. The tariff would be a blow to battery manufacturers, said Sam Adham, head of battery materials at consultancy CRU Group. A 160 per cent tariff equates to US$7 per kilowatt-hour added cost to an average EV battery cell, or one fifth of the battery manufacturing tax credits that originated in the Inflation Reduction Act and survived US President Donald Trump's budget bill, he said. 'That basically wipes out profits for one or two entire quarters for the Korean battery makers,' Adham said. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Tesla and its key battery supplier, Japan's Panasonic, were among companies pushing to block the new tariffs, arguing that they rely on Chinese graphite imports because the domestic industry has not developed enough to meet the quality standards and volume that the carmaker requires. Tesla shares fell as much as 0.7 per cent on Thursday. Graphite is a key raw material used to make anodes of the batteries, and nearly 180,000 tonnes of graphite products were imported into the US last year, with about two-thirds of these deliveries coming from China, according to BloombergNEF. China dominates the processing capacity of graphite, with the International Energy Agency (IEA) calling the material one of the most exposed to potential supply risks and 'requiring urgent efforts for diversification', according to a report in May. Graphite is expected to remain the most common anode material for all types of lithium-ion batteries in the medium term, according to the IEA, with silicon only expected to begin eating into its market share from 2030. The Commerce Department issued the preliminary determination affirming the anti-dumping duties in a document on Thursday, and said the final determination should be announced by Dec 5. The tariff ruling 'provides the policy clarity and market signals needed to accelerate domestic graphite production', said Jon Jacobs, chief commercial officer at Westwater Resources, which is building a graphite plant in Alabama. Westwater, which has agreements with Jeep-owner Stellantis NV and South Korea's SK On, will have 12,500 tonnes of production capacity when its first phase comes online next year, with plans to expand capacity to 50,000 tonnes annually by 2028, Jacobs said. Westwater rose 15 per cent on Thursday. Canadian graphite firms Nouveau Monde Graphite and Northern Graphite also surged on the tariff news. The anti-dumping rate determination 'could impact the cost structure for battery suppliers' such as Fluence Energy and Enphase Energy, analysts at Roth Capital Partners said in a note on Wednesday. Fluence shares closed lower by 0.4 per cent while Enphase dropped 0.7 per cent. Additional duties on batteries will add to the pressures facing the renewable industry. While energy storage retained key tax incentives in US President Donald Trump's budget bill, Treasury Department rules restricting the use of Chinese cells complicates compliance for many developers. Supply chain risks and costs will slow the pace of storage growth on the US grid, according to Wood Mackenzie. BLOOMBERG
Yahoo
6 days ago
- Business
- Yahoo
US Set to Impose 93.5% Tariff on Battery Material From China
(Bloomberg) -- The US Commerce Department imposed preliminary anti-dumping duties of 93.5% on Chinese imports of graphite, a key battery component, after concluding the materials had been unfairly subsidized. The Dutch Intersection Is Coming to Save Your Life Advocates Fear US Agents Are Using 'Wellness Checks' on Children as a Prelude to Arrests LA Homelessness Drops for Second Year Manhattan, Chicago Murder Rates Drop in 2025, Officials Say A trade association representing US graphite producers in December filed petitions with two federal agencies, asking for investigations into whether Chinese companies were violating anti-dumping laws. The new duties will add to existing rates making the effective tariff 160%, according to American Active Anode Material Producers, the trade group that filed the complaint. The anti-dumping duty on graphite is set to increase tensions along the global electric-vehicle supply chain that's already facing Beijing's export controls of some critical minerals and battery technology. Battery supplier shares slipped while North American graphite producers soared. 'Commerce's determination proves that China is selling AAM at less than fair value into the domestic market,' Erik Olson, a spokesperson for the the anode producers trade group, said in a statement. The tariff would be a blow to battery manufacturers, said Sam Adham, head of battery materials at consultancy CRU Group. A 160% tariff equates to $7 per kilowatt-hour added cost to an average EV battery cell, or one fifth of the battery manufacturing tax credits that originated in the Inflation Reduction Act and survived President Trump's budget bill, he said. 'That basically wipes out profits for one or two entire quarters for the Korean battery makers,' Adham said. Tesla Inc. and its key battery supplier, Japan's Panasonic Inc., were among companies pushing to block the new tariffs, arguing that they rely on Chinese graphite imports because the domestic industry hasn't developed enough to meet the quality standards and volume that the carmaker requires. Tesla shares fell as much as 0.7% Thursday. Graphite is a key raw material used to make anodes of the batteries, and nearly 180,000 metric tons of graphite products were imported into the US last year, with about two-thirds of these deliveries coming from China, according to BloombergNEF. China dominates the processing capacity of graphite, with the International Energy Agency calling the material one of the most exposed to potential supply risks and 'requiring urgent efforts for diversification,' according to a report in May. Graphite is expected to remain the most common anode material for all types of lithium-ion batteries in the medium term, according to the IEA, with silicon only expected to begin eating into its market share from 2030. The Commerce Department issued the preliminary determination affirming the anti-dumping duties in a document Thursday, and said the final determination should be announced by Dec. 5. The tariff ruling 'provides the policy clarity and market signals needed to accelerate domestic graphite production,' said Jon Jacobs, chief commercial officer at Westwater Resources Inc., which is building a graphite plant in Alabama. Westwater, which has agreements with Jeep-owner Stellantis NV and South Korea's SK On Co., currently has a pilot line producing 12,500 metric tons of graphite a year. It plans to expand capacity to 50,000 tons annually by 2028, Jacobs said. Westwater rose 15% on Thursday. Canadian graphite firms Nouveau Monde Graphite Inc. and Northern Graphite Corp. also surged on the tariff news. The anti-dumping rate determination 'could impact the cost structure for battery suppliers' like Fluence Energy Inc. and Enphase Energy Inc., analysts at Roth Capital Partners said in a note Wednesday. Fluence shares closed lower by 0.4% while Enphase dropped 0.7%. Additional duties on batteries will add to pressures facing the renewable industry. While energy storage retained key tax incentives in President Donald Trump's budget bill, Treasury Department rules restricting the use of Chinese cells complicates compliance for many developers. Supply chain risks and costs will slow the pace of storage growth on the US grid, according to Wood Mackenzie. --With assistance from Ted Mann and Doug Alexander. (Updates with additional comments and details from the third paragraph.) How Starbucks' CEO Plans to Tame the Rush-Hour Free-for-All What the Tough Job Market for New College Grads Says About the Economy Forget DOGE. Musk Is Suddenly All In on AI The Quest for a Hangover-Free Buzz How Hims Became the King of Knockoff Weight-Loss Drugs ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
