The US Commerce Department has announced preliminary anti-dumping duties on Chinese graphite imports, a key component in lithium-ion batteries. This move follows a petition from US graphite producers alleging that Chinese firms have been exporting graphite products into the US market at artificially low prices, undermining domestic and allied producers. The duties, set at 93.5% and bringing the effective tariff rate to approximately 160%, will significantly increase the cost of importing Chinese graphite into the US. A final decision is expected by December 5.
This ruling is part of the US’s broader strategy to reduce risks in critical mineral supply chains and boost local production of battery inputs under the Inflation Reduction Act. However, it also adds strain to the EV battery value chain, where a large proportion of processed graphite still comes from China. According to BloombergNEF, about two-thirds of the 180,000 metric tons of graphite imported by the US last year originated from China. The International Energy Agency has identified graphite as a material at risk of supply disruptions, calling for diversification.
NOVONIX (ASX: NVX), an Australian company developing advanced synthetic graphite production capacity in North America, stands to benefit from these duties. NOVONIX is focused on enabling a more sustainable world through developing innovative technologies, materials, and equipment for the lithium-ion battery sector. Another ASX-listed company, Syrah Resources (ASX: SYR), with its integrated supply chain from Mozambique to its Vidalia facility in Louisiana, is also expected to gain traction as buyers seek non-Chinese sources.
These developments provide clarity for graphite developers, signaling that secure supply chains for battery-grade graphite are a priority. While some graphite producer shares have already responded, analysts expect continued momentum for Australian and North American companies, especially those with advanced projects and downstream processing capabilities. Companies like NOVONIX and Syrah are becoming strategically important as energy security and clean tech manufacturing become more interconnected, and the US aims to reduce its reliance on Chinese graphite.
