Novonix (ASX:NVX) welcomes the International Trade Commission’s preliminary determination that China has suppressed the establishment of the domestic graphite industry by exporting ‘artificially cheap’ graphite to the US.
On 19 December 2024, the American Active Anode Material Producers (AAAMP), including Novonix initiated a case with the International Trade Commission and the US Department of Commerce to investigate whether China is exporting natural and synthetic graphite used to make lithium-ion battery anode material at unfair prices to the US and seeking import tariffs as a remedy.
The case filed by the AAAMP comprises four members of the North American Graphite Alliance (NAGA) and two additional graphite material producers in the US. NAGA, which Novonix is a part of, represents American and Canadian producers of battery-grade natural and synthetic graphite.
Now that the preliminary determination is completed, the case will proceed before the Department of Commerce and the International Trade Commission under the jurisdiction of US antidumping and countervailing duty (AD/CVD) statutes.
AD/CVD addresses unfair trade practices by providing relief to US industries and workers that are materially injured or threatened with injury, due to imports. Dumping occurs when a foreign producer or exporter sells a product in the US at a price that is below normal value.
Novonix interim CEO Robert Long says the ruling represents an important step towards leveling the playing field for US critical minerals producers and bringing transparency to the global markets.
“This will protect companies like Novonix from unfair predatory pricing practices by Chinese producers,” Long says.
Novonix says if the investigation proves conclusive, commerce will assess the use of additional tariffs equal to the extent of unfair pricing by the Chinese. China currently has over 95% market share for battery grade graphite.
“China’s strategic efforts to control the global critical minerals supply chain, fueled by massive government subsidies with the clear intent of suppressing fair competition, are a threat to US energy and national security,” Long notes.
Natural and synthetic graphite are consumed on a large scale for uses in many critical mineral industries including refractories, lithium-ion batteries, foundries, lubricants, and others.
Novonix is a battery technology company that owns the Riverside facility in Tennessee which aims to become the first large-scale production site dedicated to high-performance synthetic graphite for the battery sector in North America.
Write to Aaliyah Rogan at Mining.com.au
Images: Novonix
