The US Department of Commerce has finalized hefty antidumping and countervailing duties on Chinese graphite active anode materials, a move expected to strengthen Syrah Resources’ competitive edge in North America and accelerate its US operations.
- US Department of Commerce sets combined AD/CVD rates of ~160% on Chinese graphite AAM imports
- Measures subject to final US International Trade Commission approval in March 2026
- Tariffs to apply for at least five years, covering all natural and synthetic graphite AAM products
- Expected to enhance Syrah’s market position and support earlier sales from its Vidalia facility
- Part of broader US efforts to counter unfair Chinese trade practices in battery materials
Background on the Trade Measures
Syrah Resources Limited has announced a significant development in the US trade landscape for graphite active anode materials (AAM). The US Department of Commerce (DOC) has finalized antidumping and countervailing duty (AD/CVD) rates of approximately 160% on imports of Chinese graphite AAM products. These duties come after a detailed investigation prompted by Syrah’s US subsidiary and the North American Graphite Alliance, which highlighted unfairly low and subsidised Chinese imports undermining the domestic industry.
Details of the Tariff Determination
The DOC’s final ruling sets a China-wide dumping margin of 102.72% and a subsidy rate of around 67%, reflecting the Chinese government’s significant control over major graphite producers. These combined rates are higher than preliminary figures from 2025, signalling a firm stance against Chinese trade practices. The tariffs will apply broadly to all natural and synthetic graphite AAM products, including those incorporated in blended materials and components, ensuring comprehensive coverage.
Implications for Syrah and the US Market
Subject to the US International Trade Commission’s (ITC) final affirmative determination expected in March 2026, these duties will be enforced for a minimum of five years. For Syrah, this represents a potential game-changer. The tariffs are expected to level the playing field, reducing the competitive pressure from Chinese imports and enhancing demand for Syrah’s Vidalia active anode material facility in the US. This could accelerate the start of commercial sales and increase demand for Balama natural graphite as feedstock for non-Chinese AAM producers.
Broader Industry and Trade Context
This move aligns with wider US trade policies targeting unfair subsidies and dumping practices, complementing existing tariffs under various trade statutes. It underscores the strategic importance of securing domestic supply chains for battery materials critical to electric vehicles and energy storage. For the North American graphite AAM industry, these measures provide a protective shield against Chinese market dominance, potentially fostering greater investment and innovation locally.
Looking Ahead
While the DOC’s decision is a major milestone, the final outcome hinges on the ITC’s vote in March. Should the ITC affirm the ruling, Syrah and its partners in the North American Graphite Alliance will likely see a reshaped competitive landscape. Investors and industry watchers will be keen to monitor how quickly Syrah capitalises on this advantage and how competitors respond to the new tariff environment.
Bottom Line?
The US trade shield against Chinese graphite imports could accelerate Syrah’s US growth, but final ITC approval remains the key hurdle.
Questions in the middle?
- Will the US International Trade Commission affirm the DOC’s AD/CVD determination in March 2026?
- How quickly can Syrah ramp up production and sales at its Vidalia facility in response to improved market conditions?
- What impact will these tariffs have on global graphite supply chains and pricing beyond North America?