The U.S. Department of Commerce (Commerce) has determined preliminary countervailing duties of up to 721% on imports of active anode material from China, which is crucial to battery manufacturing.

Countervailing duties were imposed on the following Chinese companies:

The U.S. is conducting an anti-dumping investigation, along with investigations on countervailing duties. The final determinations for both investigations will be issued on November 13, 2025.

In February 2025, the United States International Trade Commission (USITC) determined that imports of active anode material from China were being sold at unfairly low prices because of subsidies by the Chinese government.

The investigations commenced with the American Active Anode Material Producers filing petitions with Commerce and USITC seeking the imposition of 920% tariffs on imports of natural and synthetic graphite from China to make lithium-ion battery anode material.

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

According to the petitioners, the demand for higher tariffs on graphite imports from China comes from years of significant volumes of imports from China. While most graphite from China is currently subject to 25% tariffs, the imposition of duty is inadequate.

In September 2024, the Office of the U.S. Trade Representative announced that Chinese-manufactured electric vehicles would carry a 100% tariff and a 50% tariff on solar cells. A 25% tariff applies to EV batteries, critical minerals, aluminum, and steel.

According to recent data, China’s battery industry overcapacity has surged to four times the demand, driven by state-sponsored industrial policies, low or non-existent wage protections, and weak environmental regulations.

China’s battery industry overcapacity has surged to four times the demand, driven by state-sponsored industrial policies, low or non-existent wage protections, and weak environmental regulations. The American Active Anode Material Producers alleged that China’s ability to overproduce goods is part of a deliberate strategy enabled by extensive subsidies and financial incentives provided by the Chinese government.