Tariff jab at Chinese graphite exports could inflate costs of EV batteries, analysts say
A US coalition of graphite miners has asked the Commerce Department to probe Chinese producers and apply 920 per cent of anti-dumping duties
A call by US graphite miners for a tariff as high as 920 per cent on Chinese suppliers of the mineral is threatening to cause “disruptive, far-reaching impacts” on the cost of electric vehicle (EV) batteries, auto industry analysts said.
The potential tariff on Chinese-made active anode material, if approved, could more than double the costs of EV batteries and energy storage systems in the US, according to a report published by Roth Capital Partners, an investment bank in California.
“We estimate the incremental cost could be about US$135 per kWh, representing a 125 per cent increase in the DC-block to around US$255 per kWh,” managing director Justin Clare said.
The anode typically represents around 10 to 15 per cent of the cost of a battery, which is around US$15 per kilowatt-hour (kWh), while the battery itself costs US$120 per kWh, he added.
The US imported US$13.1 billion worth of lithium batteries from China in 2023, or 70 per cent of all such imports, according to official data. China dominates the global battery supply chain, with nearly 85 per cent of battery cell production capacity and substantial shares in cathode and anode active material production, according to the International Energy Agency.
