AD/CVD Petitions Filed on Lithium-ion Battery Components

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Dec. 19, 2024
By: Austin J. Eighan

On December 18, 2024, the American Active Anode Material Producers (AAAMP) filed petitions with the U.S. Department of Commerce and the U.S. International Trade Commission (ITC) requesting the imposition of antidumping (AD) and countervailing (CVD) duties on U.S. imports of active anode material (AAM) from China. AAM is a type of battery-grade graphite and functions as one of the primary components in lithium-ion batteries.

The petitions allege that China intentionally overproduces AAM to lower global (and U.S.) prices and dumps the merchandise at unfair prices in the U.S. while also taking advantage of numerous countervailable government subsidies. These dumping and subsidy schemes have allegedly distorted the U.S. market and prevented the establishment and growth of U.S. industry.

The proposed scope of the investigations covers merchandise that meets the following description:

    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.

AAAMP estimates dumping margins of between 828% - 921%, which could serve as the AD duty rate if Commerce and the ITC affirmatively find that imports of AAM are preventing the establishment of, or causing material injury and/or threat of material injury to domestic industry.

Commerce’s International Trade Administration will have 20 days to decide whether to launch an investigation and the ITC will issue its preliminary determinations within 45 days of the investigation initiation. However, interested parties wishing to file comments on industry support must do so no later than December 30, 2024, with rebuttal comments then due on January 2, 2024.

If your company has concerns about the scope of the case or managing imports during the course of the investigations, do not hesitate to contact one of our attorneys at Barnes, Richardson & Colburn.