GreenergyDaily

May. 21, 2025

The US Department of Commerce confirmed that imported battery raw materials from China, including graphite and silicon, receive unfair subsidies, which will set the stage for the imposition of anti-subsidy tariffs on key battery components from China.

Previously, US graphite producers requested the US government to investigate whether China's massive state subsidies artificially depress prices. The Department of Commerce found that subsidies received by Chinese producers amount to as much as 721%.

The preliminary duties announced Tuesday by the Commerce Department are meant to counter subsidization of the material, though a separate probe of alleged unfair pricing is also underway. 

Final decisions are expected later this year in the trade cases, which are separate from President Donald Trump’s widespread tariffs on all trading partners as well as planned levies on semiconductors, pharmaceuticals and other goods.

China produces most of the world’s graphite. The US relies on China for 59% of its natural graphite imports and 68% of artificial graphite, according to Capstone LLC.