- The U.S. Department of Commerce has proposed tariffs of up to 721% on Chinese graphite active anode material (AAM).
- Northern Graphite (NGPHF, Financial), the only natural graphite producer in North America, is well-positioned to benefit from the tariffs.
- A final decision on the tariffs is expected around December 5, 2025.
The U.S. Department of Commerce has issued a preliminary decision to impose tariffs as high as 721% on Chinese graphite active anode material (AAM). This significant move results from an investigation into the potential subsidies by the Chinese government for AAM production. This decision aims to level the playing field for North American producers by addressing unfair competitive advantages.
Northern Graphite Corporation (OTCQB: NGPHF), as North America's sole current producer of natural graphite, stands to gain significantly from this development. The company is advancing plans to construct a battery materials facility in Canada to meet the increasing demand for locally sourced AAM. Such initiatives would reduce North America's dependence on imports, especially given that approximately 90% of graphite upgrading for AAM happens in China.
A second preliminary decision concerning antidumping is anticipated in July, with final determinations for both the countervailing duty and antidumping investigations expected by December 5, 2025. These steps are crucial as industries in North America seek to build independent, robust supply chains for battery materials.
The antidumping and countervailing duty cases were initiated by the American Active Anode Material Producers (AAAMP) and other North American industry petitioners in December 2024. This reflects a growing effort to secure and bolster the local production of critical materials used in technologies like lithium-ion batteries.
