On December 18, 2024, the American Active Anode Material Producers (“AAAMP”), a trade association of domestic manufacturers, filed a petition to impose antidumping and countervailing duties (“AD/CVD”) on U.S. imports of active anode material from China, stating that the imports are dumped and unfairly subsidized. Depending on the outcome of this petition, there may be significant consequences for a variety of battery manufacturers and consumers.
This petition is a significant development due to active anode material being used as the primary element of lithium-ion batteries, which enables an electric charge and is critical to the production of consumer electronics, medical equipment, electric vehicles, amongst other applications. The anode material is covered under this investigation regardless of whether it is imported independently or in a battery.
The petition included the following proposed scope definition:
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), or 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.
This petition will be investigated by the U.S. Department of Commerce (“Commerce”) and the U.S. International Trade Commission (“ITC”). The ITC will assess whether there is any reasonable indication that the imports have a detrimental effect on the American industry. Meanwhile, Commerce will assess whether subject imports are being dumped or unfairly subsidized and will determine appropriate AD/CVD margins. For reference, the AAAMP alleged the following AD/CVD margins: AD margins from 828% to 921%, ad valorem, and CVD margins above de minimis.
If Commerce and the ITC make preliminary affirmative determinations, U.S. importers will be required to post cash deposits in the amount of the AD/CVD duties for all entries made on or after the date Commerce’s preliminary determinations are published in the Federal Register. However, the entire investigative process will take approximately one year, with final determinations of dumping, subsidization, and injury likely occurring near the end of 2025.
For more information concerning this petition or assistance in determining how this petition may affect your business, please contact one of our trade professionals here.