Northern Graphite Comments on Impacts of US Decision to Impose Antidumping Tariffs on Chinese Graphite

Core Viewpoint - The U.S. Department of Commerce has imposed preliminary antidumping tariffs of 93.5% on Chinese graphite-based active anode material, significantly impacting the North American battery materials landscape and promoting domestic sourcing of these materials [2][3]. Industry Summary - The U.S. tariffs on Chinese AAM are part of a broader strategy to encourage North American battery manufacturers to source materials locally, especially following the "Big Beautiful Bill" which incentivizes sourcing outside of China to retain tax credits [2][4]. - The total value of AAM imports from China was reported at $350 million in 2023 and $380 million in 2022, indicating a significant market that is now subject to high tariffs [3]. - The tariffs are retroactive, requiring importers to post large cash deposits for recent and future shipments, which could lead to increased costs for U.S. battery manufacturers [3][7]. Company Summary - Northern Graphite Corporation is positioned to benefit from these developments as the only producer of natural graphite in North America, with plans to build one of the region's largest AAM plants in Baie-Comeau, Quebec [4][9]. - The company is a founding member of the North American Graphite Alliance (NAGA), which aims to promote a secure domestic graphite supply chain and has been actively engaging with U.S. policymakers [4][5]. - Northern Graphite's assets include the Lac des Iles mine in Quebec and the advanced stage Bissett Creek project in Ontario, both of which are strategically located to meet the growing demand from North American battery manufacturers [10].