The U.S. Department of Commerce has finalized steep fresh tariffs on anode-grade graphite imported from China, a key material in the production of lithium-ion batteries. The decision, announced Friday, follows a determination that Chinese manufacturers were selling the material in the U.S. At less than fair market value.
The tariffs, which could reach as high as 721% according to a preliminary determination made in May 2025, are intended to bolster the domestic graphite industry and reduce U.S. Reliance on Chinese supply chains. The U.S. International Trade Commission (ITC) had previously asserted that China suppressed the development of graphite industries in the U.S. And other nations through artificially low-priced exports.
The move is expected to benefit U.S. Manufacturers poised to produce graphite domestically. Novonix Limited, a battery materials and technology company with operations in Chattanooga, Tennessee, publicly applauded the Commerce Department’s decision. “This decision is an important step in supporting the United States’ goal of developing critical mineral supply domestically for increased energy independence,” said Michael O’Kronley, CEO of Novonix, in a statement released following the preliminary determination.
The tariffs are comprised of countervailing duties (CVD) and potential antidumping duties (AD). The CVD tariffs currently stand at up to 721%, with any additional AD tariffs to be added on top of that figure. Final determinations for both investigations were expected around December 5, 2025. The trade case was initiated by the American Active Anode Material Producers, a group including Novonix and other U.S. Graphite anode material producers, representing the North American Graphite Alliance (NAGA).
According to a report from February 12, 2026, Chinese factories and ports are continuing to operate at a high level of activity despite the imposition of tariffs. The U.S. Has already finalized tariff rates, with the effective rate for anode active material (AAM) now reaching 160%, including previously announced CVD tariffs of 11.5% and President Trump’s existing 30% tariffs.
The Department of Commerce is continuing its investigation into potential antidumping practices, with final determinations expected to be issued in the coming months. The outcome of this investigation will determine the full extent of the tariffs imposed on Chinese graphite imports.