The US Department of Commerce has finalised aggressive new trade protections against Chinese battery-grade graphite.
The determination imposes combined duties exceeding 160% on synthetic and natural graphite active materials imported from China.
The ruling follows extensive antidumping and countervailing duty investigations, which concluded that Chinese exporters were unfairly subsidising production and "dumping" materials into the US market at below-cost prices.
The Department of Commerce set an antidumping duty of 102.72% (China-wide) and a countervailing duty of approximately 66.8%.
The measures target nearly all variations of graphite used in lithium-ion batteries, including coated, uncoated, and blended materials.
NOVONIX (ASX:NVX) welcomed the decision as a critical victory for domestic manufacturing.
CEO Mike O'Kronley stated that the tariffs represent a "meaningful step toward restoring fair competition" and will accelerate investment in US-based advanced manufacturing jobs.
By increasing the cost of Chinese imports, the duties provide a protective "moat" for local companies trying to scale production.
The final implementation of these duties now rests with the US International Trade Commission, which is expected to issue a final determination on "material impediment" to the domestic industry in March.
At the time of reporting, NOVONIX's share price was $0.33.