US Moves to Curb Chinese Graphite Imports Set to Benefit Australian Battery Material Players

In a major shift that could reshape global battery supply chains, the US Commerce Department has announced preliminary anti-dumping duties on Chinese graphite imports, a core component in lithium-ion batteries.

The move follows a petition from US graphite producers, who allege that Chinese firms have been exporting artificially low-priced graphite products into the US market, undermining domestic and allied producers.

The duties—set at 93.5% and bringing the effective tariff rate to around 160%—will significantly increase the cost of importing Chinese graphite into the US.

De-Risking Critical Mineral Supply

This ruling comes as the US intensifies its efforts to de-risk critical mineral supply chains and bolster local production of battery inputs under the Inflation Reduction Act.

However, it also adds fresh strain to an already fragile EV battery value chain, where the vast majority of processed graphite still originates from China.

A final decision is expected by December 5.

Chinese Graphite Dominance

According to BloombergNEF, roughly two-thirds of the 180,000 metric tons of graphite imported by the US last year came from China.

The International Energy Agency (IEA) recently flagged graphite as one of the most vulnerable materials to supply disruptions, calling for urgent diversification.

While the tariffs will present a short-term challenge to manufacturers reliant on Chinese inputs—adding an estimated $7 per kilowatt-hour to battery cell costs—they offer a significant opportunity for graphite producers in Australia and North America.

Local Beneficiaries

One likely beneficiary of any such duties is NOVONIX (ASX: NVX), which is actively developing advanced synthetic graphite production capacity in North America.

As one of the few companies outside China capable of scaling anode material production, NOVONIX is well positioned to capitalise on the US policy shift, particularly given its partnership with Phillips 66 and plans to expand capacity to 10,000 tonnes per annum.

Other ASX-listed companies such as Syrah Resources (ASX: SYR)—with its vertically integrated supply chain from Mozambique to its Vidalia facility in Louisiana—are also expected to gain further commercial traction as US and allied buyers seek reliable, non-Chinese sources.

Much-Needed Clarity

These developments provide much-needed policy clarity for graphite developers and send a strong market signal: secure supply chains for battery-grade graphite are now a strategic priority.

While shares in some graphite producers have already reacted to the announcement, industry analysts believe the shift will drive continued momentum for Australian and North American players over the medium term, particularly those with advanced-stage projects, qualified offtakes, and downstream processing capacity.

As energy security and clean tech manufacturing become increasingly intertwined, companies like NOVONIX and Syrah are entering a new phase of strategic relevance—just as the world’s biggest economy moves to break its dependency on Chinese graphite.