The US Department of Commerce has sharply increased trade penalties on Chinese graphite anode materials, concluding that producers in China engaged in unfair pricing and subsidy practices that harmed the US market.
In a final determination issued February 11, 2026, Commerce raised countervailing duties on Chinese natural graphite anode material to 66.68 percent and maintained anti-dumping duties at 93.5 percent.
Combined with existing tariffs, the total effective rate on imports of Chinese natural graphite anode material now stands at approximately 220 percent as determined by Westwater Resources (NYSE:WWR) in a separate release.
The ruling remains subject to a final affirmative injury determination by the US International Trade Commission, expected in March 2026. If the ITC affirms injury, the duties will remain in place for a minimum of five years under US trade law.
Westwater Resources, a US-based battery-grade natural graphite developer, said the final determination confirms that Chinese producers violated anti-dumping rules.
The company estimates the cumulative tariff burden now includes a 10 percent duty under the International Emergency Economic Powers Act, 25 percent Section 301 tariffs, 25 percent Section 232 tariffs, 66.68 percent countervailing duties and 93.5 percent anti-dumping duties, totaling roughly 220.18 percent.
The final ruling marks a significant escalation from the preliminary findings issued in 2025.
At that time, Commerce imposed countervailing duties of 11.58 percent and anti-dumping duties of 93.5 percent. The anti-dumping rate remains unchanged, but the countervailing duty component was substantially increased in the final decision.
The investigation also traces back to a petition filed in December 2024 by American Active Anode Material Producers (AAAMP), a coalition representing North American graphite producers.
The group sought tariffs as high as 920 percent, arguing that Chinese state subsidies and artificially low pricing were undermining efforts to build a domestic graphite anode industry.
Active anode materials covered by the investigation include natural and synthetic graphite, as well as graphite contained within finished lithium-ion batteries. Graphite is the largest component in the anode of lithium-ion batteries used in electric vehicles and energy storage systems, typically consisting of a blend of natural and synthetic materials.
The US Geological Survey (USGS) has previously reported that the US does not mine natural graphite and relies entirely on imports to meet its requirements. In 2024, all domestic graphite demand was met through foreign supply.
Westwater said the expanded trade measures could shift demand toward US-produced natural graphite anode materials, particularly across lithium-ion battery markets such as electric vehicles, energy storage and defense applications.
The company is developing the Kellyton graphite processing plant in Alabama and controls the Coosa Graphite Deposit, described as the largest and most advanced natural flake graphite deposit in the contiguous United States.
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.