Officials of Chattanooga-based battery materials maker NOVONIX are welcoming the preliminary determination by the U.S. Department of Commerce to impose antidumping tariffs of 93.5 percent on anode active material.
That material includes synthetic and natural graphite imports from China.
The effective tariff rate for AAM is now 160 percent, which includes the previously announced countervailing duty tariffs of 11.5 percent placed by Commerce in May, President Trump’s blanket 30 percent tariffs on goods from China, and 25 percent Section 301 tariffs implemented by USTR last year.
Michael O’Kronley, CEO of NOVONIX, stated, “The decision today underscores the strategic importance of building a domestic supply chain for critical minerals, including synthetic graphite, in North America. It affirms our business strategy as well as the diversification strategy of our customers to source critical battery materials and components locally. NOVONIX, with the most advanced synthetic graphite production facility in North America, will be increasing significantly the United States production of an essential strategic mineral while strengthening American manufacturing, and creating high-quality jobs locally.”
The AD investigation determines whether the graphite is being sold at less than fair value, while the CVD investigation previously announced in May determines whether the Chinese government is subsidizing the production and supply of graphite AAM to the United States.
The additional AD tariff announced by Commerce Friday will now stack onto the previously announced CVD tariffs. The final determinations for both the AD and CVD investigations will be issued around Dec. 5.
Officials said, "NOVONIX’s Riverside facility in Chattanooga is poised to become the first large-scale production site dedicated to high-performance synthetic graphite for the battery, defense, and industrial sectors in North America. To meet increasing customer demand, the company previously announced its second synthetic graphite manufacturing plantat the Enterprise South Industrial Park.
With the initial capacity at Enterprise South and its existing Riverside facility, which is scaling up to 20,000 tons per year, NOVONIX will have total production capacity of over 50,000 tons per year in Chattanooga, officials said.