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US graphite association calls for 920% tariffs on Chinese imports

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The American Active Anode Material Producers (AAAMP), a coalition of American graphite producers, has filed a petition to the US Department of Commerce and International Trade Commission (ITC) calling for a trade investigation on the violation of anti-dumping laws on natural and synthetic graphite from China — and to impose tariffs as high as 920% on imports.

Graphite is a critical element for lithium-ion battery anode material in electric vehicle batteries and energy storage systems.

Global graphite demand is forecast to almost quadruple by 2040 in the IEA’s net zero emissions scenario, but global supply is highly concentrated:

more than 90% of battery-grade graphite is expected to originate from China by 2030
in 2023 China introduced restrictions on graphite, requiring exporters to obtain special licenses to export graphite products
the US is 100% import-dependent for graphite
the US has listed the graphite as a critical mineral
China accounted for more than 42% of US imports in 2023

The call for higher tariffs comes after China has announced a new review on graphite exports.

Graphite Share of mined or raw material production by country - The Oregon Group - Critical Minerals and Energy Intelligence

“There is overwhelming evidence that China dumps artificially cheap graphite into global markets, which is made possible by state-sponsored policies and massive subsidies,”

— said AAAMP spokesperson Erik Olson

According to the AAAMP, the current tariff of 25% on imports from China are “far too low”, with experts at Buchanan Ingersoll & Rooney PC, the law firm handling the case, estimating dumping margins as high as 920%. This would mean China could easily absorb the current 25% tariff.

These practices, according to the US producers, have severely undercut American companies and threaten the viability of the domestic graphite industry.

Five companies were exploring or developing graphite-mining projects in the United States—two in Alabama, one in Alaska, one in Montana, and one in New York. In July, the project in Alaska was awarded a grant of US$37.5 million.

The timing of the petition ahead of a Trump presidency is likely no coincidence, and, as our recent analysis and documents suggest — tariffs will be a tool used to support mining in North America under the incoming administration

Our analysis on the graphite market at a turning point:

Graphite mining at turning point

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