The American Active Anode Material Producers (AAAMP) has filed petitions with the U.S. Department of Commerce and the U.S. International Trade Commission (ITC) seeking the imposition of 920% tariffs on imports of natural and synthetic graphite from China used to make lithium-ion battery anode material.

The demand for higher tariffs on graphite imports from China comes from years of significant volumes of ‘unfairly’ priced Chinese imports of active anode material into the U.S., according to the petitioners.

The U.S.-based national law firm Buchanan Ingersoll & Rooney PC has filed the petitions on behalf of AAAMP.

AAAMP has requested anti-dumping and countervailing duties to counter unfairly low-priced imports of active anode material.  Experts say that even with 920% of tariffs, China can absorb an additional 25% of the cost.

Active anode material is one of the primary components in lithium-ion batteries, which are used to power electric vehicles, consumer electric products, medical equipment, and various other applications.

Erik Olsen, an AAMP spokesperson, said, “AAAMP is filing this case to help protect the North American graphite industry, which is at risk of being smothered by China’s malicious trade practices. There is overwhelming evidence that China dumps artificially cheap graphite into global markets, which is made possible by state-sponsored policies and massive subsidies. Without trade relief from the U.S. government, the domestic graphite industry is in peril. China’s anti-competitive actions make it challenging for graphite producers to find secure financial footing, which prevents them from becoming established players in the global market.”

While most graphite from China is currently subject to 25% tariffs, the imposition of duty is inadequate. Fueled by state-sponsored industrial policies, low or no wage protections, and lack of environmental stewardship, China’s overcapacity in the battery industry has quadrupled in demand, according to recent data.

“China’s ability to overproduce goods is part of a concerted strategy made possible by massive subsidies and other financial incentives provided to companies by the Chinese government,” alleged AAMP.

Anti-dumping duties aim to offset the amount if a product is sold at less than fair value or “dumped” in the U.S. The Department of Commerce calculates the dumping margin. Countervailing duties are intended to offset unfair subsidies that a foreign government provides in the production of a particular good. The ITC determines whether the establishment of a domestic industry is materially retarded or if the industry is materially injured as a result of the unfairly traded imports.

The entire investigative process will take approximately one year, with final determinations of dumping, subsidization, and injury likely occurring near the end of 2025. Duties can be attached to imports of the active anode material as of the time of the preliminary determinations in the case.

ITC will determine if the graphite is being sold at less than fair value and if the Chinese government is subsidizing its production. Separately, the ITC will decide if the U.S. industry has been materially injured or whether the establishment of the domestic industry has been materially retarded by the unfairly priced imports.

If both the Commerce and ITC investigations prove conclusive, Commerce can assess additional tariffs required to offset the unfair pricing by the Chinese.

Earlier this month, the Department of Commerce recently announced its preliminary affirmative determinations in the anti-dumping duty investigations of crystalline photovoltaic cells, whether or not assembled into modules, from Cambodia, Malaysia, Thailand, and Vietnam.

In October, the U.S. imposed anti-dumping duties at rates ranging from 2.02% to 376.85% and countervailing duties at rates ranging from 1.44% to 168.81% on aluminum extrusions imported from 14 countries, including India.