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U.S. Rules in Favor of Duties on Chinese Graphite Anode Material

U.S. Rules in Favor of Duties on Chinese Graphite Anode Material

Harry Minnis
May 20, 2025

Key Highlights:

• U.S. Department of Commerce issues preliminary ruling confirming Chinese active anode material producers received unfair subsidies.
• Huzhou Kaijin and Shanghai Shaosheng face duties over 700%.
• Ruling aims to reduce U.S. dependency on Chinese graphite inputs and support domestic battery supply chain resilience.

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In a major development for the US graphite supply chain, the U.S. Department of Commerce has issued its preliminary affirmative determination in the countervailing duty (CVD) investigation into active anode material from China. The ruling finds that multiple Chinese producers received unfair government subsidies, justifying the preliminary subsidy rates. A separate antidumping investigation is still underway, with its own preliminary determination expected by May 27, 2025.

Who’s Hit and By How Much

	Exporter/Producer	Subsidy Rate (percent)
1	Huzhou Kaijin New Energy Technology Corp., Ltd.1	712.03*
2	Panasonic Global Procurement China Co., Ltd. / Panasonic Corporation of China2	6.55
3	Shanghai Shaosheng Knitted Sweat	721.03*
4	All Others	6.55

Why This Matters

China controls the vast majority of global active anode material production – a critical input for lithium-ion batteries used in electric vehicles and energy storage systems. This ruling marks a significant shift in U.S. trade policy, one that aligns with growing bipartisan efforts in Washington to rebuild domestic battery supply chains and reduce dependency on China.

The case has drawn attention at the highest levels, withTesla arguing against the tariffs earlier this year, citing a lack of qualified domestic supply. However, today’s ruling suggests the U.S. government is prioritising long-term resilience over short-term disruption.

Next Steps

	EVENT	CVD INVESTIGATION
1	Commerce Preliminary Determinations	May 19, 2025
2	Commerce Final Determinations	September 29, 2025
3	ITC Final Determination*	November 13, 2025
4	Issuance of Order**	November 20, 2025