US says China is not pricing out American battery anode makers, ITC votes against AD/CVD tariffs

In a vote held on March 12, the U.S. International Trade Commission (ITC) ruled against the implementation of tariffs on graphite anode imports from China. The decision effectively kills the anti-dumping and countervailing duty (AD/CVD) orders that would have seen combined duty rates surge as high as 169.5% for most Chinese exporters.

The vote was 2-1, with the official release stating, “Chair Amy A. Karpel and Commissioner David S. Johanson voted in the negative. Commissioner Jason E. Kearns voted in the affirmative.”

The ruling provides a positive economic outlook for the U.S. battery energy storage system (BESS) industry, which had been bracing for a potential period of price volatility. According to an analysis of AAMs in the US previously published by ESS News, the initial petition seeking duties as high as 920% represented a “crazy level” that would have destabilized the sector and many others.

Iola Hughes, head of research at Rho Motion, said previously that while AAM currently accounts for 10% to 15% of an LFP battery system’s cost, a 150% tariff would have pushed that share to 22%. At the extreme 920% level once proposed by petitioners, AAM would have accounted for 55% of total system costs, blowing out all financial models.

With China currently controlling roughly 92% of both synthetic and natural graphite AAM supply chains, the ITC’s determination that the US industry has not been stifled unfairly by the Chinese market prevents an immediate inflationary spike. Developers relying on batteries for their energy storage project remain tethered to Chinese supply as domestic processing capacity is still a considerable way off from commercial scale, perhaps stretching to multiple years.

The American Active Anode Material Producers (AAAMP) coalition, representing the US domestic battery industry, expressed sharp disappointment, arguing that the decision ignores the reality of a subsidized global market.

“This outcome is disappointing for domestic producers who were seeking trade relief to create a more level playing field with their Chinese competitors,” said AAAMP spokesperson Erik Olson. “The evidence produced during the investigation made one thing clear: China’s graphite industry is heavily subsidized and capable of manipulating global markets in ways that make it extraordinarily difficult for domestic producers to compete. That cannot be argued.”

Industries within batteries are at odds

Battery manufacturers in the US escape large tariffs, one bullet dodged as many others remain in terms of fluctuating electric vehicle sales, and the question of FEOC. (Read more: “Made in the USA” batteries might still fail FEOC)

Still, the US energy storage industry scores a win on near-term bankability of storage projects, as a protectionary response doesn’t occur, which does dampen hopes of domestic or sovereign supply chain setups. With China’s scale and advanced industry, imports will remain tough to compete with. Domestic content may provide some hope for those manufacturers, with these tariffs now appearing to be null and void.

The full public report containing the Commission’s detailed views and findings is expected to be released by April 26, 2026.