Ted Mann and Shawn Donnan of Bloomberg report that U.S. graphite firms are seeking a 920% duty to thwart China. They write:
US producers of a crucial material used in electric vehicle batteries have initiated a trade action seeking sharp tariff increases on Chinese graphite, arguing that Beijing’s massive state subsidies are artificially lowering prices and making it impossible for their companies to compete.
A trade association representing US graphite producers filed petitions with two federal agencies Tuesday after the close of business asking for investigations into whether Chinese companies are violating anti-dumping laws, according to documents seen by Bloomberg News.
The industry group hopes to trigger punitive tariffs of as much as 920% on Chinese graphite in response, opening a battle that is an early indication of high-stakes conflicts ahead among strategic industries as Donald Trump enters office on a promise of dramatically higher import duties. […]
Graphite currently accounts for about 10% of the cost of making an EV battery cell, according to Sam Abuelsamid, an analyst with Guidehouse Insights. A 900% increase in the cost of graphite would double the overall cost, at least until alternative suppliers could increase output. Producing a battery in the US already costs at least 20% more than doing so in China, according to the International Energy Agency. […]
According to official trade data the value of US imports of graphite from China has almost tripled since the Trump tariffs were first introduced in 2018 and Tesla won an exemption. In 2023, imports from China were worth some $290.9 million and represented almost 70% of the value of US imports of graphite.
China has also signaled that it is willing to use its graphite exports as an economic weapon. In early December it announced that it would be placing new export restrictions on critical minerals including graphite in retaliation for expanded US export curbs on high-end semiconductors.
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