NOVONIX Limited announced on July 18, 2025, that the U.S. Department of Commerce issued a preliminary determination to impose antidumping (AD) tariffs of 93.5% on anode active material (AAM), including synthetic and natural graphite imports from China. This decision significantly increases the cost of Chinese graphite entering the U.S. market. The effective tariff rate for AAM is now 160%, which includes the previously announced countervailing duty (CVD) tariffs of 11.5% from May, President Trump’s blanket 30% tariffs, and 25% Section 301 tariffs.
Michael O’Kronley, CEO of NOVONIX, stated that this decision underscores the strategic importance of building a domestic supply chain for critical minerals, including synthetic graphite, in North America. He affirmed that it validates NOVONIX's business strategy and its customers' diversification efforts to source critical battery materials locally. NOVONIX, with its advanced synthetic graphite production facility in North America, is positioned to significantly increase U.S. production of this essential strategic mineral.
The AD investigation determines if graphite is being sold at less than fair value, while the CVD investigation addresses government subsidies. The additional AD tariff will stack onto the previously announced CVD tariffs. Final determinations for both investigations are expected around December 5, 2025. This regulatory action provides a substantial competitive advantage for domestic producers by making imported Chinese graphite significantly more expensive.
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