U.S. Graphite Trade Case Update: Recent Developments

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U.S. Graphite Trade Case Update: Recent Developments


  • ITC Tariff Hearing: On January 7, 2025, all sides presented their arguments at the initial International Trade Commission hearing on the American Active Anode Material Producers’ (AAAMP) proposed 920% tariffs on Chinese graphite.
  • Tesla’s Reaction: At the ITC hearing, Tesla argued against the tariffs, citing a lack of U.S. graphite that meets their standards.
  • Congressional Interest: Bipartisan lawmakers show increasing concern over China’s control of critical minerals, supporting AAAMP’s security and economic arguments.

Since the December filing by the American Active Anode Material Producers (AAAMP), a coalition of U.S. graphite producers, to initiate a trade investigation and impose tariffs as high as 920% on imports of Chinese graphite for lithium-ion battery anodes, the case has become a topic of concern in Washington, D.C.

The initial hearing for the case took place on January 7, marking what could be a pivotal moment that drives the much-needed change for the global graphite market.

Following the hearing, Erik Olson, spokesperson for the AAAMP and President of Venn Strategies, shared his insights with GraphiteHub. He critiqued the opposition’s approach at the ITC hearing, particularly noting their failure to address the core issues at hand. “During the three hours the opposition spoke during the ITC hearing, they never mentioned China. Not once. Instead, they made arguments about the domestic industry not being able to produce graphite that meets the qualification standards they set. This is not only a tacit admission that China’s malicious practices are undercutting the ability of the domestic industry to grow, but a failure to acknowledge political headwinds and the priorities of the new administration, which has vowed to be tough on China.”

Impact on the Graphite Market and EV Adoption

Analysts warn that the imposition of 920% tariffs on these imports could significantly increase battery prices and delay EV adoption.

Given these potential repercussions, Tesla, represented by the law firm Akin Gump Strauss Hauer & Feld, had its attorney, Matthew Nicely, present at the hearing, stating that “tariffs of up to 920 percent make no sense” and that “this case should be brought to a hasty close.” Given that no supplier in the USA currently meets Tesla’s specifications for graphite, Nicely stated that this is not Tesla’s problem. Quotes cited in this section were obtained from an article by Hannah Northey for GREENWIRE, published on January 9, 2025.

Washington D.C. Outlook

However, given the shift in administration priorities towards strengthening national security and reducing reliance on Chinese imports, arguments suggesting that the U.S. cannot meet these standards are likely to face significant opposition in Washington, D.C.

Olson also spoke on recent legislative discussions, emphasising the bipartisan recognition of the need to counter China’s dominance in the global critical minerals supply chain. He stated, “Our meetings on the Hill have been encouraging. We’ve discussed the case with both Democratic and Republican offices in the House and Senate. We noticed the continuation of a trend that really gained momentum last year, which is a growing bipartisan recognition of the need to counter China’s dominance of the global critical minerals supply chain. The energy, economic, and national security risks are becoming too big to ignore. The offices are interested in the scope of this case and understand the need for it.”

What’s Next?

The antidumping (AD) investigation, which counter unfairly low prices, and countervailing duty (CVD) investigation, which combat foreign subsidies that harm domestic industries, into graphite imports will progress through several milestones in 2025.

The International Trade Commission will make preliminary determinations on February 3. The Department of Commerce will announce preliminary decisions for the CVD investigation on March 13 and for the AD investigation on May 27, with final decisions due on May 27 for CVD and August 11 for AD. If affirmative, the ITC’s final decisions will be on July 11 for CVD and September 25 for AD, leading to the issuance of orders on July 18 for CVD and October 2 for AD.

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