U.S. Department of Commerce's Anti-Dumping Decision on Chinese Graphite Backed by Westwater Resources
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In a significant move to protect and encourage growth in the domestic graphite anode material industry, the US Department of Commerce has announced preliminary tariffs on graphite-based anode materials imported from China.
The tariffs, which were announced in mid-2025, include a preliminary anti-dumping tariff of 93.5% and a preliminary countervailing duty (CVD) tariff of approximately 11.58%, related to subsidies found. These tariffs are in addition to existing tariffs, including a 30% tariff from the previous blanket Trump-era tariffs and a 25% Section 301 tariff imposed by the US Trade Representative in 2024.
When combined, these tariffs result in an effective total tariff rate of around 160% on Chinese graphite anode materials for most producers. Certain Chinese companies face even higher punitive duties, exceeding 700%, effectively barring them from the US market.
The countervailing duty rate has been updated from 6.55% to 11.58% in the May ruling. The cumulative effect of the new anti-dumping duties, countervailing duties, and other tariffs makes it economically clear that batteries built in the US should use graphite made in the US.
Jon Jacobs, Chief Commercial Officer of Westwater Resources, emphasized the distinction between the DOC rulings and legislative-driven global trade tariffs. He stated that the second decision by the DOC is more impactful than the first, providing long-term support for U.S.-based graphite production. Jacobs's statements indicate strong support for the U.S. domestic graphite industry.
The ruling is the second major decision by the DOC targeting practices by Chinese producers. It confirms that Chinese producers are violating anti-dumping rules and selling graphite-based anode materials into the US market at unfairly low prices, thereby harming domestic producers.
Westwater Resources, Inc. (NYSE American: WWR) supports the U.S. Department of Commerce's ruling. The total tariffs and duties on Chinese graphite-anode materials now range from 160% to 869.5%, including the newly added anti-dumping duties. The final determinations are scheduled by December 5, 2025, which could adjust rates but are expected to remain high.
This news comes as the battery industry continues to grow, with electric vehicles becoming increasingly popular. The graphite anode material is critical for battery manufacturing, and the US Department of Commerce believes that these tariffs will help protect and encourage growth in the domestic industry.
Reference(s):
- Westwater Resources' Announcement about Supporting the U.S. Department of Commerce's Anti-dumping Ruling on Chinese Graphite
- Batteries News Shaping the Battery Market
- The tariffs imposed by the US Department of Commerce on Chinese graphite anode materials are impacting the finance sector, as they increase the costs for businesses importing these materials.
- As the decision to impose tariffs on Chinese graphite anode materials by the US Department of Commerce is expected to encourage growth in the domestic graphite industry, it could potentially lead to further developments and advancements within the broader business and finance sector.
