Graphite-related stocks moved higher after the US Commerce Department announced a 93.5% anti-dumping tariff on Chinese graphite imports.
This move follows a petition filed in December 2024 by the American Active Anode Material Producers (AAAMP), a trade association representing US graphite producers, which alleged that Chinese companies were selling graphite imports below fair market value, violating anti-dumping laws.
These new duties will be added on top of existing tariffs, making the effective tariff on Chinese graphite imports 160%, according to the trade group.
“This is an important ruling for North American graphite producers,” AAAMP spokesperson Erik Olson said in a statement.
“Dumping is a malicious trade practice used by China to undercut competition and wield geopolitical influence. It is all made possible by a concerted combination of massive subsidies and other state-sponsored policies.”
Following the preliminary determination, a final decision is expected on December 5, which could result in even higher tariffs.
North American graphite companies were boosted by the news, with investors expecting a significant reduction in competition from low-cost, subsidized Chinese graphite, which has historically dominated the US market, amid rising demand for the key battery material.
Westwater Resources Inc (NYSE-A:WWR), which is advancing the Kellyton graphite processing plant in Alabama, saw its shares surge 19.2%.
American Battery Technology Company (OTCQB:ABML) shares added 10.3% and Lithium Americas Corp (TSX:LAC, NYSE:LAC) added 8.2%.
Canada-listed Northern Graphite Corp (TSX-V:NGC, OTCQB:NGPHF) surged 42%, while Nouveau Monde Graphite (TSX-V:NOU, NYSE:NMG) added 25%, Graphite One (TSX-V:GPH, OTCQX:GPHOF) added 18.3%, NextSource Materials Inc. (TSX:NEXT, OTCQB:NSRCF) was up 16% and Focus Graphite (CVE:FMS) was up 8%.