New Antidumping and Countervailing Duty Petitions on Active Anode Materials From China

Introduction

On December 18, 2024, the American Active Anode Material Producers, an ad hoc trade association of domestic manufacturers, filed petitions with the U.S. Department of Commerce (DOC) and the U.S. International Trade Commission (ITC) seeking antidumping and countervailing duties (AD/CVD) on imports of active anode material from China. Members of the American Active Anode Material Producers include Anovian Technologies, Syrah Technologies LLC, NOVONIX Anode Materials LLC, Epsilon Advanced Materials 5060 and SKI US Inc. The petitions invoke the rarely used material retardation provision in the law for a nascent domestic industry, alleging that subject imports are inhibiting the establishment of production in the United States.

Active anode material is the primary component for lithium-ion battery anodes, which enable the flow of electric charge. The material is therefore significant to the production of electric vehicles, consumer electronics, medical equipment and other applications. Importantly, the scope covers active anode material contained in a component of imported downstream products, such as batteries.

Under U.S. law, a domestic industry can petition the government to initiate an AD investigation into the pricing of an imported product to determine whether it is sold in the United States at less than fair value (i.e., “dumped”). A domestic industry can also petition the government to initiate a CVD investigation into the alleged unfair subsidization of foreign producers by a foreign government. Additional duties can be imposed if DOC determines that imported goods are “dumped” and/or unfairly subsidized, and if the ITC makes an affirmative determination with respect to injury by reason of subject imports.

If the ITC and DOC make preliminary affirmative determinations, U.S. importers will be required to post cash deposits in the amount of the AD and/or CVD duties for all entries made on or after the date DOC’s preliminary determinations are published in the Federal Register. The preliminary AD/CVD rates can change in the final DOC determinations, especially if foreign producers and their governments participate fully in the investigations.

Scope

Active anode material, whether synthetic, natural or a blend of synthetic or natural; with or without coating; regardless of whether in powder, dry, liquid or any other form. Subject merchandise typically has a maximum size of 80 microns. Subject merchandise has an energy density of 330 milliamp hours per gram or greater and a degree of graphitization of 80% or greater. Subject merchandise can be referred to as “active anode material.”

Subject merchandise is covered regardless of whether it is mixed with silicon based active materials, e.g., silicon-oxide (SiOx), silicon-carbon (SiC), silicon or additives such as carbon black or carbon nanotubes. Subject merchandise is covered regardless of the combination of compounds that comprise the graphite material; the graphite contained in the subject merchandise has a minimum purity content of 90% carbon. Subject merchandise is covered regardless of whether it is imported independently, as part of a compound, in a battery, as a component of an anode slurry, or in a subassembly of a battery such as an electrode. Only the anode grade graphite material is covered when entered as part of a mixture with silicon based active materials, as part of a compound, in a battery, as a component of an anode slurry, or in a subassembly of a battery such as an electrode.

Active anode material subject to the investigations may be classified under the Harmonized Tariff Schedule of the United States (HTSUS) subheadings 2504.10.5000 and 3801.10.5000. Subject merchandise may also enter under HTSUS subheading 3801.90.0000. The HTSUS subheadings are provided for convenience and customs purposes only. The written description of the scope of the investigations is dispositive.

Foreign Producers and Exporters of Subject Merchandise

A list of foreign producers and exporters of active anode material, as identified in the petitions, is provided in Attachment 1.

U.S. Importers of Subject Merchandise

A list of U.S. importers of active anode material, as identified in the petitions, is provided in Attachment 2.

Alleged Margins of Dumping/Subsidization

The American Active Anode Material Producers allege dumping margins from 828% and 921%.

DOC generally assigns duties at these alleged dumping rates to exporters that fail to cooperate during the investigation.

No specific subsidy rates are included in the petitions.

Potential Trade Impact

According to official U.S. import statistics, a total of over $374 million or 84,000 metric tons of the subject merchandise was imported into the United States in 2023.

Estimated Schedule of Investigations