NOVONIX Limited (NVX, NVX.AX) applauds the recent preliminary ruling by the International Trade Commission (ITC), which addresses China's manipulation of the domestic graphite industry by exporting underpriced graphite to the United States. This development comes in the wake of the December 19, 2024, announcement by the American Active Anode Material Producers (AAAMP)—of which NOVONIX is a member—urging the ITC and the U.S. Department of Commerce to probe China's export strategies. The investigation centers on determining whether China is selling natural and synthetic graphite, vital for lithium-ion battery anodes, in the U.S. at prices deemed unfair, with the potential outcome of imposing import tariffs.
Robert Long, the Interim CEO of NOVONIX, commented that China's strategic maneuvers to dominate the global supply chain for critical minerals, bolstered by substantial government subsidies with the intent to stifle fair competition, pose significant threats to U.S. energy and national security. The ITC's decision marks a crucial move toward creating a level playing field for U.S. producers of critical minerals and ensuring transparency in the global market. This development aims to shield companies like NOVONIX from unfair pricing tactics employed by Chinese producers.
With the ITC's initial assessment in place, the process will proceed concurrently at the Commerce Department and the ITC under U.S. antidumping and countervailing duty (AD/CVD) statutes. Should the investigation substantiate the claims, the Commerce Department will implement additional tariffs to mitigate China's unfair pricing methods. Currently, China commands over 95% of the market share for battery-grade graphite.
