US imposes 160% tariff on battery materials imported from China

Last year, the US imported about 180,000 tonnes of graphite, about two-thirds of which came from China, according to BloombergNEF data. (Source: Reuters)

On July 17, the US Department of Commerce imposed a provisional anti-dumping tax of 93.5% on graphite imported from China - a key material in battery production, after concluding that this item was unfairly subsidized by Beijing.

According to the American Association of Anode Active Materials Manufacturers (AAAMP), the petitioner, the total effective duty would be as high as 160% when added to existing duties.

Sam Adham of consulting firm CRU Group said the tax would be equivalent to an additional $7 per kilowatt-hour cost for electric vehicle batteries.

The move comes amid growing tensions in the global electric vehicle supply chain, especially as China imposes export controls on some strategic minerals and battery technology.

According to Mr. Adham, the 160% tariff would hit battery makers hard: “It would almost wipe out the profits of Korean battery makers in a quarter or two.”

He added that the cost was about one-fifth of the tax incentives for battery manufacturing under the Deflationary Act — a policy that remains in President Trump's budget.

Companies including Tesla and Japan’s major battery supplier Panasonic have lobbied against the new tariffs, saying U.S. manufacturers have failed to meet graphite quality and production requirements. Tesla shares fell as much as 1.4% on July 17.

The U.S. imported about 180,000 tons of graphite last year, about two-thirds of which came from China, according to BloombergNEF data. Graphite is currently the main raw material for lithium-ion battery cathode materials, and is expected to remain the dominant material until at least 2030.

China now dominates global graphite processing capacity. The International Energy Agency (IEA) in a May report called the material “highly supply-risk” and called for “urgent diversification.”

The US Department of Commerce made a preliminary conclusion on anti-dumping duties in a document published on July 17, and said that the final decision will be made before December 5./.

According to Vietnamplus

Source: https://www.vietnamplus.vn/my-ap-thue-160-doi-voi-vat-lieu-pin-nhap-khau-tu-trung-quoc-post1050264.vnp

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