US imposes 160% tax on battery materials imported from China

Last year, the US imported about 180,000 tonnes of graphite, of which about two-thirds came from China, according to BloombergNEF data. (Source: Reuters)

The US Department of Commerce on July 17 imposed a provisional anti-dumping tax of 93.5% on graphite imported from China - a key material in battery production, after concluding that the product was unfairly subsidized by Beijing.

According to the American Association of Anode Active Materials Manufacturers (AAAMP), the petitioner, the total effective tax rate would be as high as 160% when adding existing duties.

Sam Adham of consultancy CRU Group said the tax is equivalent to an additional cost of $7 per kilowatt-hour for electric vehicle batteries.

The move comes amid growing tensions in the global electric vehicle supply chain, particularly as China imposes export controls on some strategic minerals and battery technology.

According to Mr. Adham, the 160% tariff would hit battery makers hard: “It would almost wipe out the profits of Korean battery makers in a quarter or two.”

He added that the cost was about one-fifth of the battery manufacturing tax incentives provided under the Deflation Reduction Act — a policy that remains in President Trump's budget.

Companies like Tesla and Japan’s main battery supplier Panasonic have lobbied against the new tariffs, saying US manufacturers have not met graphite quality and production requirements. Tesla shares fell as much as 1.4% on July 17.

Last year, the US imported about 180,000 tonnes of graphite, about two-thirds of which came from China, according to BloombergNEF data. Graphite is currently the main raw material for making negative electrodes in lithium-ion batteries, and is expected to remain the dominant material until at least 2030.

China now dominates global graphite processing capacity. The International Energy Agency (IEA) in a May report called the material “highly supply-risk” and called for “urgent diversification.”

The US Department of Commerce issued a preliminary conclusion on anti-dumping duties in a document published on July 17, and said the final decision will be made before December 5./.

According to Vietnamplus

Source: https://www.vietnamplus.vn/my-ap-thue-160-doi-voi-vat-lieu-pin-nhap-khau-tu-trung-quoc-post1050264.vnp

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