The US Commerce Department has dropped a sledgehammer on one of China’s most lucrative battery exports, imposing preliminary anti‑dumping duties of 93.5 % on battery‑grade graphite shipped to the United States. When added to existing penalties, the effective tariff wall now towers at roughly 160 %—a move Washington argues is needed to stop “unfairly subsidised” Chinese producers from undercutting US suppliers.
Why graphite matters
Graphite isn’t a sideshow in the EV race; it’s the single largest component of a lithium‑ion battery anode, and China controls more than 80 % of global processed supply. US cell makers currently rely almost entirely on Chinese material—an uncomfortable dependency as tariffs on a widening list of battery metals kick in.
How we got here
A coalition called American Active Anode Material Producers petitioned regulators last December, accusing Chinese firms of dumping graphite at below‑cost prices. Commerce’s preliminary finding backs that claim. Final duties could still change after a fuller investigation, but importers must start paying cash deposits at the 93.5 % rate immediately.
Winners in focus
The sudden price umbrella over non‑Chinese graphite and lithium chemicals hands a windfall to domestic projects racing to come on‑line:
- $WWR – Building the Kellyton, Alabama graphite‑anode plant; management lobbied for the tariff case and now gains pricing power in offtake talks.
- $ABAT – Fast‑tracked Tonopah Flats (NV) clay‑lithium project; integrated mine‑to‑refinery model stands out as cathode producers scramble for IRA‑compliant feedstock.
- $SLI – Smackover brine resources in Arkansas could deliver tariff‑free lithium hydroxide to U.S. gigafactories.
- $ALB – Already runs the Silver Peak lithium brine mine in Nevada and is reviving Kings Mountain (NC); scale and conversion know‑how make it a go‑to alternative.
- $LAC – Construction under way at Thacker Pass (NV), one of the world’s largest claystone lithium deposits, positioning it to displace imported material as tariffs bite.
Market impact
The new 93.5 % anti‑dumping duty on Chinese graphite jolted the market: Tesla shares slid about 2 % in market trade as investors braced for higher battery‑anode costs and possible margin pressure until the EV maker secures an alternative supply. In contrast, U.S. critical‑mineral names surged on the prospect of tariff‑protected pricing.
• $WWR — Alabama graphite‑anode plant now looks even more competitive.
• $ABAT — Tonopah Flats clay‑lithium project gains pricing power.
• $SLI — Smackover brine lithium becomes a higher‑margin feedstock.
• $ALB — Only operating U.S. lithium mine, plus conversion capacity.
• $LAC — Thacker Pass construction progress in the spotlight.
Graphite spot prices in Asia jumped, and battery‑metal ETFs are bid as traders price in a tighter supply picture.
What’s next
Commerce will issue a final determination later this year, followed by an International Trade Commission ruling on injury. Given bipartisan pressure to localize EV supply chains—and the Inflation Reduction Act’s tax credits tied to “foreign entity of concern” rules—few expect a reversal.
For US battery makers, the message is clear: secure a domestic graphite pipeline or pay a triple‑digit toll at the port. For investors, the hunt for North American critical‑minerals exposure just got even hotter.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
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