The United States government has sharply tightened trade measures against Chinese graphite used in lithium-ion batteries, after the U.S. Department of Commerce confirmed the existence of unfair trade practices.
The decision substantially increases countervailing duties on active anode material (AAM), a critical component in lithium-ion battery manufacturing. The new rates are nearly six times higher than previously imposed levels.
On February 11, 2026, the U.S. Department of Commerce issued its final determinations in the anti-dumping and countervailing duty investigations concerning AAM imported from the People’s Republic of China.
Final duty structure: What changed?
In 2025, preliminary findings had set:
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Countervailing duties at 11.58%
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Anti-dumping duties at 93.5%
Under the final ruling:
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Countervailing duties increased to a range of 66.82%–66.86%
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Anti-dumping duties remain at 93.5% for certain companies
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A nationwide anti-dumping rate of 102.72% applies to other Chinese exporters
According to estimates from an international consulting firm, the cumulative impact of U.S. trade measures on Chinese natural graphite anode material now reaches approximately 220%.
Breakdown of total U.S. tariffs on Chinese graphite AAM
| Measure | Rate |
|---|---|
| IEEPA Tariff | 10% |
| Section 301 Tariffs | 25% |
| Section 232 Tariffs | 25% |
| DOC Countervailing Duties | 66.68% (previously 11.58%) |
| DOC Anti-Dumping Duties | 93.5% |
| Total Effective Duties | ~220.18% |
The final determination follows a year-long investigation into alleged subsidies and price distortions by Chinese graphite producers supplying the U.S. battery value chain.
However, the measure still requires a final ruling from the U.S. International Trade Commission (ITC), expected in March 2026. If the ITC concludes that Chinese imports caused material injury to the domestic industry, the tariffs will remain in force for at least five years under U.S. trade law.
If confirmed by the ITC, the new tariff structure could accelerate domestic demand for U.S.-produced natural graphite for lithium-ion battery applications.
This would directly impact:
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Electric vehicle (EV) manufacturing
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Utility-scale energy storage systems
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Defense supply chains
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Broader strategic and critical minerals policy
Given the rapid expansion of EV production, battery gigafactories, and grid-scale storage across North America, the measure could significantly reshape supply chains for critical raw materials central to the clean energy transition.
The ruling also adds pressure on Asian suppliers and may incentivize further investment in domestic graphite mining, processing capacity, and vertical integration within the U.S. battery manufacturing ecosystem.
