U.S. Department of Commerce to Place Up to 721% Tariffs on Chinese Graphite

Core Viewpoint - The U.S. Department of Commerce has made a preliminary affirmative determination to impose countervailing duty tariffs of up to 721% on synthetic and natural graphite anode material imported from China, which is seen as a significant step towards supporting domestic production of critical minerals for energy independence [1][2]. Group 1: Company Developments - NOVONIX Limited is part of the American Active Anode Material Producers, which filed the trade case against Chinese graphite imports, highlighting its role in advocating for U.S. graphite industry interests [3]. - The company is expanding its production capabilities with plans for a new high-performance synthetic graphite manufacturing plant in Chattanooga, Tennessee, which will complement its existing Riverside facility, aiming for a total production capacity exceeding 50,000 tonnes per annum [4]. Group 2: Industry Context - The preliminary ruling by the Department of Commerce follows a determination by the International Trade Commission that China has been suppressing the establishment of the graphite industry in the U.S. by exporting graphite at artificially low prices, impacting the lithium-ion battery supply chain [1][2]. - The ongoing antidumping duty investigation by Commerce may lead to additional tariffs, compounding the impact of the countervailing duties [2].