WASHINGTON: The US Commerce Department has set the stage for anti-subsidy duties on imports of key battery components from China, after concluding materials had been unfairly subsidised.
The agency’s preliminary determination is an early milestone in a trade case looking at supplies of active anode material, which is vital for electric vehicle (EV) batteries, and includes materials such as graphite and silicon.
US graphite producers were among the petitioners that asked for investigations into whether China’s massive state subsidies are artificially lowering prices and making it harder for them to compete.
A sharp tariff increase would raise the cost of US-made EVs at a time when a Republican tax plan would eliminate consumer credits on the vehicles.
The preliminary duties announced Tuesday by the Commerce Department are meant to counter subsidisation of the material, though a separate probe of alleged unfair pricing is also underway.
Final decisions are expected later this year in the trade cases, which are separate from President Donald Trump’s widespread tariffs on all trading partners. — Bloomberg
