The US Commerce Department has imposed preliminary anti-dumping duties of 93.5 per cent on graphite imports from China. This decision follows an investigation into whether Chinese companies were violating anti-dumping laws, initiated by a petition from the American Active Anode Material Producers trade group in December. Graphite is a crucial component in the production of electric vehicle batteries.
The new duties will significantly increase the overall tariff rate on Chinese graphite, bringing it to approximately 160 per cent. According to American Active Anode Material Producers, the increased tariff could escalate tensions within the global electric-vehicle supply chain. This supply chain is already navigating export controls imposed by Beijing on certain critical minerals and battery technologies.
Industry experts suggest the tariff could substantially increase costs for automakers who rely on graphite for electric car production. Sam Adham, head of battery materials at consultancy CRU Group, estimates that a 160 per cent tariff would add around $US7 per kilowatt-hour to the cost of an average EV battery cell. This increase could negate a significant portion of the battery manufacturing tax credits provided by the Inflation Reduction Act.
Adham noted that such a tariff could significantly impact the profitability of battery manufacturers, potentially eliminating profits for Korean battery makers for one to two financial quarters. The situation highlights the growing complexities and cost pressures within the electric vehicle battery supply chain.
