The US has imposed a preliminary anti-dumping tax of 93.5% on imported anode-quality graphite from China, but this tax will only take effect from December 5, 2025.
This move aims to protect non-Chinese graphite producers, creating a competitive advantage in the crucial electric vehicle battery material supply chain dominated by China.
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The 93.5% tax on anode graphite from China will take effect at the end of 2025.
Graphite manufacturers outside China collectively saw their stock prices rise due to favorable market expectations.
Some major companies like Tesla oppose the tax due to concerns that rising costs will affect US consumers.
What does the US anti-dumping tax on Chinese graphite mean for the electric vehicle battery industry?
The decision of the US Department of Commerce reflects a strategic interest in reducing dependence on China in the battery material supply chain. The preliminary tax of 93.5% could increase to a total of 160% when combined with existing additional taxes.
Ben Lyons, head of equity research at investment bank Jarden, considers this a positive step to boost graphite supply outside China, especially as Beijing tightens exports of lithium iron phosphate battery technology.
"This is a strong signal that the US intends to build a supply chain not reliant on China."
Ben Lyons, Head of Equity Research, Jarden, 2025
Graphite used for anodes is almost entirely controlled by Chinese suppliers due to low production costs and stable technology. This makes it difficult for Western manufacturers to break free from dependence on Chinese sources.
Tim Bush, a battery analyst at UBS in Hong Kong, noted that the lack of financial cooperation from US automakers limits the development of a substitute graphite supply chain.
What is the market impact on graphite producers outside China?
Shares of graphite mining companies outside China surged after the tax announcement. Specifically, Syrah Resources (Australia) rose 22%, Nouveau Monde Graphite (Canada) increased 26%, Novonix (Australia-US) climbed 15%, and Posco Future M (South Korea) saw a 20% gain.
These numbers reflect expectations that these companies will benefit from protective measures, reducing competitive pressure from Chinese suppliers in the strategic battery materials market.
Why do some large companies like Tesla oppose this anti-dumping tax?
Tesla and Panasonic oppose the tax due to concerns that rising import costs will increase battery and electric vehicle production costs, negatively impacting US consumers.
Tesla previously stated in a report submitted to the government that domestic graphite producers lack the technical capacity to supply the necessary quality graphite in large quantities for the battery industry.
"Building a supply chain for essential materials in North America is a strategic factor in reducing the risk of dependence on imports."
Michael O’Kronley, CEO of Novonix, 2025
This causes battery and electric vehicle manufacturers to consider costs more carefully, as the incurred import tax could diminish the value of the federal tax credit for battery manufacturing issued by the Biden administration.
Can graphite manufacturers outside China compete in terms of technology and cost?
According to Matthieu Bos, CEO of Falcon Energy Materials, despite rising stock prices, Western manufacturers still face significant challenges in large-scale production with low costs and high quality if they lack technical experience from China.
He emphasized that companies often find it easier to raise investment capital than to build actual production capacity, which requires significant time and effort for sustainable development.
Specific examples of investment in developing a graphite supply chain in the United States
The US government has granted over $750 million in loans to Novonix to build the largest synthetic graphite plant in North America in Chattanooga. This is part of the effort to reduce dependence on Chinese graphite sources amid Beijing's tightening of strategic battery material exports.
Frequently Asked Questions
When did the US impose anti-dumping taxes on graphite from China?
The anti-dumping tax of 93.5% will officially take effect from December 5, 2025, to protect graphite manufacturers outside China.
How does this tax affect the electric vehicle battery market?
The tax may increase battery raw material prices, affecting electric vehicle costs, but at the same time stimulate the development of non-Chinese supply sources.
Why does Tesla oppose this anti-dumping tax?
Tesla is concerned that domestic graphite producers lack sufficient capacity to supply, and that the tax will increase input costs, impacting vehicle prices and consumers.
What is the impact of the tax on graphite producers outside China?
Manufacturers like Syrah Resources and Nouveau Monde Graphite have seen stock price increases, reflecting expectations of a more favorable market.
Is it really feasible to break away from Chinese supply sources?
With many technical and cost challenges, Western companies still need time and significant investment to achieve a sustainable market share.
Source: https://tintucbitcoin.com/graphite-tien-dien-tu-tang-sau-thue-my/
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