US hikes duties on Chinese battery-grade graphite

On February 11, 2026, the US Department of Commerce announced its final affirmative determinations in the antidumping duty (AD) and countervailing duty (CVD) investigations of active anode material (AAM) from the People’s Republic of China.

In its preliminary determinations in 2025, the DOC imposed countervailing and anti-dumping duties of 11.58% and 93.5%, respectively. In the final determination issued on February 11, 2026, the DOC increased the countervailing duty rate to between 66.82% and 66.86%, while maintaining the anti-dumping duty rate at 93.5% for specified companies. A China-wide anti-dumping duty rate of 102.72% was imposed on all other exporters.

Imports of Chinese active anode materials are now subject to multiple layers of trade measures, resulting in a total effective duty of approximately 220%, according to US battery-grade natural graphite producer Westwater Resources. This includes a 10% IEEPA tariff, 25% Section 301 tariffs, 25% Section 232 tariffs, 66.68% Department of Commerce countervailing duties (up from 11.58%), and 93.5% anti-dumping duties.

Westwater Resources said the combined effect of these measures could further increase demand for US-produced natural graphite anode material across lithium-ion battery markets, including electric vehicles, battery energy storage systems, defense, and other applications.

Meanwhile, Novonix, which is scaling up synthetic graphite production in Tennessee, estimates that the total tariffs applicable to active anode material imported from China will be at least 160%.

“These determinations represent a meaningful step toward restoring fair competition in the US anode materials market,” said Mike O’Kronley, CEO of Novonix. “By addressing longstanding trade distortions, these measures strengthen the foundation for domestic production of critical battery materials, accelerate investment in US manufacturing, and support the creation of high-quality advanced manufacturing jobs.

The duties apply broadly to anode graphite materials, as defined by Commerce, including synthetic and natural graphite products, whether coated or uncoated, as well as blended materials used in lithium-ion battery applications.

The DOC’s final determination follows a year-long investigation into alleged subsidization of Chinese anode material producers and pricing practices affecting the US market. The petitioner in the antidumping and anti-subsidy cases is American Active Anode Material Producers, a coalition that includes Anovion Technologies, Syrah Technologies, SKI US, Episol Advanced Materials and Novonix Anode Materials.

The decision remains subject to a final affirmative injury determination by the US International Trade Commission (ITC), expected in March 2026. If the ITC issues an affirmative ruling, the DOC’s duties will remain in effect for a minimum of five years under US trade law.

Once finalized, the tariffs will apply to imports that were valued at $347 million in 2023, according to the Commerce Department.