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U.S. Continues Anti-Dumping Probe on China’s Anode Material for Li-ion Batteries

The United States International Trade Commission (USITC) has ruled that imports of active anode material from China—a key component in lithium-ion (Li-ion) batteries—are potentially harming the U.S. domestic industry. Following this decision, the U.S. Department of Commerce will proceed with investigations, with a preliminary countervailing duty determination expected by March 13, 2025, and an anti-dumping duty determination by May 27, 2025.

In December 2024, the American Active Anode Material Producers (AAAMP) petitioned for 920% tariffs on natural and synthetic graphite imports from China, arguing that current 25% tariffs are insufficient. Experts claim that even a 920% tariff may not significantly impact China’s overproduction strategy, as China’s battery industry overcapacity is now four times higher than global demand, fueled by state-backed subsidies and lenient labor and environmental regulations.

The investigation will determine whether Chinese graphite imports are being sold below fair value and subsidized by the Chinese government, causing material injury to U.S. manufacturers. If proven, additional duties may be imposed by late 2025.

This case reflects the broader U.S. push to protect its clean energy supply chain and reduce reliance on Chinese battery materials, especially amid growing concerns over trade imbalances and geopolitical tensions.