Novonix backs US push for steep graphite tariffs against China in global supply chain crackdown

Australian miner Novonix (ASX: NVX) has come out in support of a call by its US graphite mining counterparts for the White House to impose major tariff increases on their Chinese rivals.

Novonix said it applauds a preliminary affirmative determination by the US Department of Commerce (DoC) to impose up to 721% in countervailing duty (CVD) tariffs on synthetic and natural graphite anode material from China.

“This decision is an important step in supporting the US goal of developing critical mineral supply domestically for increased energy independence,” chief executive officer Michael O’Kronley said.

Chinese suppression

The DoC decision follows the February determination by the International Trade Commission asserting that China had suppressed the establishment of the graphite industry in the US –and elsewhere – by exporting artificially cheap graphite, a key component of lithium-ion batteries.

There are reports the DoC is also undertaking its own anti-dumping duty (AD) investigation into the graphite market, with any additional AD tariff imposed added to the CVD tariffs.

The final determinations for both investigations are expected in early December, 2025.

Initial trade case

The initial trade case was filed by the American Active Anode Material Producers, which is comprised of four members of the North American Graphite Alliance (NAGA), including Novonix.

NAGA has complained that the existing US tariff of 25% on most Chinese graphite is “far too low” and can be absorbed easily by Chinese rivals.

Riverside facility

Novonix’s Riverside facility is poised to become the first large-scale production site dedicated to high-performance synthetic graphite for the battery sector in North America, which is experiencing increasing demand.

The company has also signed a definitive agreement to purchase a 182-acre parcel in the Enterprise South Industrial Park in Chattanooga, Tennessee.

With the initial capacity at Enterprise South added to that of the Riverside facility, Novonix is scaling its graphite production to up to 20,000 tonnes per annum, creating total production capacity of more than 50,000tpa.