• The US has imposed a 93.5% anti-dumping duty on Chinese graphite imports.
• This measure affects anode-grade graphite used in electric vehicle batteries.
• The duties are expected to escalate costs significantly for US automakers.
• Final decisions on tariffs are due by December 5, 2025.
• China dominates graphite processing, heightening supply chain risks.

The US Commerce Department announced on Thursday that it will impose a 93.5% anti-dumping duty on anode-grade graphite imported from China. This decision follows findings that the material is sold in the US at below fair market value, impacting imports valued at approximately US$347.1 million in 2023. The tariff applies uniformly to all Chinese producers, affecting both synthetic and natural graphite with at least 90% carbon purity according to Bloomberg, SCMP, and India Times.

This anti-dumping order complements an earlier investigation revealing that Chinese graphite producers were allegedly benefiting from unfair subsidies. Preliminary countervailing duties have been set at 6.55% for most producers, with significantly higher rates for specific companies - 712.03% for Huzhou Kaijin New Energy Technology Corp and 721.03% for Shanghai Shaosheng Knitted Sweat, as noted in the Commerce Department's findings according to SCMP and India Times.

The implications of this tariff extend to the electric vehicle sector, potentially raising production costs for car manufacturers reliant on these materials. According to consultant Sam Adham, this could add roughly US$7 per kilowatt-hour to battery costs, impacting profits significantly for companies like Tesla who depend on Chinese graphite imports due to the current US domestic industry's limitations. As noted, the tariffs could add to existing pressures within the already strained global electric vehicle supply chain, particularly in light of China's ongoing export controls on critical minerals and battery technologies according to Bloomberg and SCMP.