The United States has significantly escalated trade restrictions on Chinese graphite used in lithium-ion batteries, following a year-long investigation into unfair trade practices.
The U.S. Department of Commerce confirmed that Chinese exporters benefited from subsidies and pricing distortions, prompting a sharp increase in countervailing duties on active anode material (AAM), a core component in lithium-ion battery production.
Preliminary 2025 measures set countervailing duties at 11.58% and anti-dumping duties at 93.5%. The final determination, issued on February 11, 2026, raises countervailing duties to 66.82%–66.86% for targeted Chinese companies while maintaining anti-dumping duties at 93.5% for certain producers. For other exporters, a nationwide anti-dumping rate of 102.72% now applies. Combined, the cumulative impact of U.S. tariffs on Chinese natural graphite anode material reaches roughly 220%, according to an international consulting firm’s estimates.
The ruling still requires approval from the U.S. International Trade Commission, expected in March 2026. If the ITC confirms that Chinese imports caused material injury to domestic producers, the tariffs would remain in force for at least five years, reshaping the supply of critical battery materials in North America.
Analysts predict the decision could accelerate domestic demand for U.S.-sourced graphite across multiple sectors, including electric vehicle production, utility-scale energy storage, and defense supply chains. As the U.S. expands battery gigafactories and grid-scale storage, reliance on imported Chinese graphite—currently the dominant supplier globally—becomes a strategic vulnerability.
The measure also signals broader implications for the clean energy transition. By incentivizing investment in domestic mining, processing, and vertical integration of graphite, the tariffs may strengthen the resilience of the U.S. battery ecosystem while creating opportunities for industrial scaling and supply chain localization. At the same time, Asian suppliers, particularly in China, face heightened uncertainty, potentially accelerating the diversification of global graphite supply networks.
The final tariffs reflect a growing intersection of trade policy and strategic materials management in the battery sector. Lithium-ion technology, critical to decarbonization across transport and power sectors, now sits at the center of a geopolitical contest over critical minerals. With EV production expanding rapidly and storage requirements rising to support clean energy grids, U.S. industrial policy is poised to shape which suppliers dominate the North American battery market in the coming decade.
