- The U.S. Department of Commerce has imposed preliminary anti-dumping tariffs of 93.5% on Chinese graphite-based active anode material (AAM), bringing the total effective tariff rate to 160%.
- Northern Graphite (OTCQB: NGPHF), North America's sole natural graphite producer, plans to capitalize on these developments by constructing a large AAM plant in Baie-Comeau, Quebec.
- Chinese AAM imports to the U.S. were valued at $350 million in 2023, with final determinations on the tariffs expected by December 5, 2025.
The United States Department of Commerce has levied preliminary anti-dumping tariffs of 93.5% on imports of graphite-based active anode material (AAM) from China. When combined with existing countervailing duties and tariffs, this raises the effective tariff rate to a significant 160%, retroactively impacting shipments. As a result, importers are required to post cash deposits on both recent and future shipments.
These tariffs, valued at $350 million for Chinese imports in 2023, provide a considerable competitive edge to Northern Graphite (OTCQB: NGPHF), the only natural graphite producer in North America. The company is poised to exploit these market shifts by planning to establish one of the largest AAM production facilities in Baie-Comeau, Quebec. This strategic move is aimed at bolstering domestic supply chains and capturing increased market share as U.S. manufacturers look to reduce reliance on Chinese imports.
Final decisions regarding the anti-dumping and countervailing duty investigations are anticipated around December 5, 2025. This decision underscores a significant shift in the battery materials landscape, aligning with broader U.S. policies urging manufacturers to source materials domestically. This move is expected to significantly benefit North American producers like Northern Graphite, especially in light of recent legislative changes advocating for reduced dependence on Chinese goods.
