The U.S. has imposed a 93.5% anti-dumping tariff on Chinese graphite, leading to a significant surge

On Tuesday, July 18, the U.S. Department of Commerce announced that it would impose a 93.5% anti-dumping tariff on natural graphite products imported from China. The reason for this decision is that Chinese manufacturers were found to be selling graphite in the U.S. market at prices lower than fair value, thereby harming domestic industries. This decision is expected to be officially implemented after the final ruling is confirmed, and it may impact key supply chains for electric vehicles and battery manufacturing in the U.S.

In response to this news, stock prices of domestic graphite and battery material producers in the U.S. surged significantly. By the close of trading, Graphite One (GPHOF) skyrocketed by 24%, Syrah Resources (SYAAF) rose by 18%, and Novonix (NVX) saw an increase of over 12%. Market analysts believe that if the high tariffs are enforced, it will significantly raise the import costs of Chinese graphite, benefiting domestic and allied suppliers.

China is the world's largest producer and exporter of graphite, supplying approximately 60% of the world's natural graphite. The tariffs imposed by the United States primarily target spherical graphite used in anode materials for lithium-ion batteries, which is crucial in the renewable energy industry chain. Industry experts point out that if the tariffs are maintained in the long term, they could increase battery manufacturing costs in the U.S. and accelerate companies' efforts to seek alternative sources or domestic production.