US imposes anti-dumping duties on key EV battery component from China

WASHINTON: The United States unveiled on Thursday preliminary anti-dumping duties of 93.5% on imports of a key battery component from China, after looking into a petition on the matter.

Final determinations regarding duties on graphite are expected in early December, according to the US Commerce Department.

Its investigation came after a petition by the American Active Anode Material Producers, an ad-hoc coalition including US graphite producers, late last year.

Graphite is an important raw material used in making anodes of batteries, and China is a dominant player when it comes to its processing capacity of graphite.

The duty could raise temperatures in the global electric vehicle supply chain, potentially adding to costs for automakers who rely on the material for production.

The products covered under the investigation includes active anode material, whether or not they are contained in finished batteries.

China and the United States are now engaged in negotiations about their broader economic relationship after reaching a framework for a deal last month, stepping back from the brink of a spiraling trade war.

Asked about the new graphite duties, Beijing's foreign ministry said Friday that "the essence of China-US economic and trade cooperation is mutual benefit and win-win results".

"It is hoped the US side will conscientiously abide by the rules of the market economy and maintain the healthy and stable development of China-US economic and trade relations," spokesman Lin Jian said.

The US Commerce Department's notice came after Washington took aim at solar imports from Southeast Asia as well earlier this year.

Since returning to the White House in January, President Donald Trump has also separately targeted sector-specific imports with tariffs, including 50% duties on imported steel and aluminum, alongside other levies on autos.