Core Viewpoint - The U.S. Department of Commerce has determined that imports of graphite from China are unfairly subsidized, imposing a preliminary anti-dumping duty of 93.5% on anode-grade graphite imports, with a final decision expected by December 5 [1][2]. Group 1: Impact on the Industry - The new tariffs will exacerbate the global electric vehicle supply chain tensions, with the average cost of electric vehicle batteries potentially increasing by $7 per kilowatt-hour, which could negate a significant portion of the tax credits outlined in the Inflation Reduction Act [2]. - China supplies over 90% of the world's graphite, which constitutes about 95% of the anode materials for electric vehicles, leading to a potential increase of approximately $1,000 in battery prices for U.S. manufacturers [2][3]. - The U.S. imported nearly 180,000 tons of graphite products last year, with about two-thirds sourced from China, highlighting China's dominance in graphite processing capabilities [3]. Group 2: Strategic Responses - Tesla and its key battery supplier, Panasonic, have attempted to block the new tariffs, citing their reliance on Chinese graphite due to the underdevelopment of the domestic U.S. graphite industry [3]. - The U.S. government's primary aim appears to be the development of a domestic graphite manufacturing industry, as graphite is predominantly used in the aluminum electrolysis and steelmaking sectors, which consume the majority of graphite [3]. - The imposition of tariffs may lead to significant adjustments for Chinese companies, necessitating the exploration of alternative export markets, while U.S. companies may face supply chain disruptions and increased upstream costs [4].