"U.S. Companies Demand 920% Anti-Dumping Tariffs on Chinese Graphite"

U.S. graphite producers have reportedly asked U.S. authorities to impose 920% anti-dumping tariffs on Chinese graphite exporters.

U.S. companies claim that Chinese companies cannot compete fairly with them because they produce and export graphite, a key material for electric vehicle batteries, at a low price with huge subsidies from the Chinese government.

Citing data obtained exclusively on the 18th local time, Bloomberg reported that the Association of Active Cathode Producers, which represents U.S. graphite producers, has filed a petition with two regulators, the U.S. Department of Commerce and the International Trade Commission, asking them to conduct anti-dumping investigations on Chinese companies.

U.S. companies have argued that up to 920% anti-dumping tariffs should be imposed on Chinese graphite.

Currently, the U.S. tariff rate on graphite imports is 25%.

If such high tariffs become a reality, the tariff war expected by U.S. President-elect Donald Trump's pledge could begin in the graphite industry between the U.S. and China.

If the incoming Trump administration, which has already vowed to stop paying electric vehicle subsidies, raises tariffs on graphite, it will also be inevitable to raise the cost of producing electric vehicles in the United States.

Graphite is the largest component in EV battery cathode materials by volume, and it can be mined or processed to make natural graphite, both of which China is the largest producer.Sam Abuelsamid, analyst at

Guidehouse Insights, said graphite accounts for about 10% of EV battery manufacturing costs and predicted a 900% rise in graphite prices would double overall battery manufacturing costs until other suppliers were able to ramp up output.

Even now, the cost of producing batteries in the United States is at least 20% higher than in China, according to the International Energy Agency (IEA).

The imposition of anti-dumping tariffs is also expected to affect Elon Musk's electric vehicle company Tesla, which is considered Trump's closest aide.

Tesla also uses batteries containing Chinese graphite, and during the first Trump administration, it was successful by lobbying to prevent U.S. government tariffs on Chinese graphite.

According to the U.S. Geological Survey, the U.S. does not currently produce natural graphite.

Instead, it is pushing for more investment in graphite mining and synthetic graphite production to reduce its reliance on graphite for China.

The U.S. graphite industry, however, argues that such efforts will be ineffective without further action on Chinese graphite.

"The U.S. graphite industry is on the verge of suffocation due to China's malicious trade practices," argued lobbyist Eric Olson, who serves as a spokesperson for the Association of Active Cathode Producers, which filed the petition.

Olson also said, "If the graphite industry exists in North America and we want it to grow, we must protect it. The industry can never grow without stopping China from entering," he stressed.

The decision on whether to impose tariffs is expected to take place after Trump takes office early next year and the investigation into the situation is completed.