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) |
|---|---|
| Huzhou Kaijin New Energy Technology Corp., Ltd.1 | 712.03* |
| Panasonic Global Procurement China Co., Ltd. / Panasonic Corporation of China2 | 6.55 |
| Shanghai Shaosheng Knitted Sweat | 721.03* |
| All Others | 6.55 |
*Rate based on facts available with adverse inferences.
1 Pursuant to 19 CFR 351.304(c)(2), the bracketing of business proprietary information in the original business proprietary document or, if a corrected version is timely filed, the corrected business proprietary document will become final. Once bracketing has become final, Commerce will not accept any further corrections to the bracketing of information in a submission, and Commerce will treat non-bracketed information as public information. As the name of Huzhou Kaijin New Energy Technology Corp., Ltd. was unbracketed in the public version of Panasonic’s supplemental questionnaire response, Commerce is treating this name as public information. See Panasonic’s Letter, “1st Supplemental Section III Questionnaire Response,” dated May 1, 2025, at Exhibit S-4a (i.e., ACCESS barcode 4754928-01); see also the Federal Register notice and accompanying Preliminary Decision Memorandum at 8-9.
2 Panasonic is a trading company that sold subject merchandise produced by an unaffiliated supplier BTR New Material Group Co., Ltd., BTR (Jiangsu) New Energy Material Co., Ltd., and BTR New Material Group Sales Co., Ltd. (collectively, BTR) and BTR’s affiliates. We are preliminarily cumulating the benefits received by BTR and BTR’s affiliates with the benefits received by Panasonic into one rate for Panasonic. For further details, see the Federal Register notice and accompanying Preliminary Decision Memorandum at 2-4 and 28-29.
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, with Tesla 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 |
|---|---|
| Commerce Preliminary Determinations | May 19, 2025 |
| Commerce Final Determinations | September 29, 2025 |
| ITC Final Determination* | November 13, 2025 |
| Issuance of Order** | November 20, 2025 |
NOTE: Commerce’s preliminary and final determination deadlines are governed by statute. For CVD investigations, the deadlines are set forth in sections 703(b) and 705(a)(1) of the Tariff Act of 1930, as amended (the Act).
* This will take place only in the event of a final affirmative determination from Commerce.
** This will take place only in the event of final affirmative determinations from Commerce and the International Trade Commission (ITC).
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