.jpg)
4 hours ago
1
Article content
(Bloomberg) — Battery material makers’ stocks climbed as the US set to impose preliminary anti-dumping duties of 93.5% on graphite imports from China.
THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
SUBSCRIBE TO UNLOCK MORE ARTICLES
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
REGISTER / SIGN IN TO UNLOCK MORE ARTICLES
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account.
- Share your thoughts and join the conversation in the comments.
- Enjoy additional articles per month.
- Get email updates from your favourite authors.
THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account
- Share your thoughts and join the conversation in the comments
- Enjoy additional articles per month
- Get email updates from your favourite authors
Sign In or Create an Account
or
Article content
Shares of Australian graphite miner Syrah Resources Ltd. surged as much as 38%, while shares of South Korea’s Posco Future M Co. climbed 24%. Novonix Ltd., an Australian-listed company with a graphite production plant in Chattanooga, Tennessee, surged 21%. Gains in these and other Asian stocks tracked earlier jumps in Canadian peers including Nouveau Monde Graphite Inc.
Article content
Article content
Article content
The Commerce Department issued the preliminary determination Thursday, and a final plan should be announced by Dec. 5. The US determined that China, which dominates the processing capacity of graphite, had been unfairly subsidizing the industry.
Article content
By signing up you consent to receive the above newsletter from Postmedia Network Inc.
Article content
Graphite is a key raw material in the anodes of electric-vehicle batteries. About two-thirds of the material imported by the US still came from China last year, according to BloombergNEF, even though China strengthened export control on some categories of graphite since 2023. The US has sought to encourage EV makers to be less reliant on Chinese components with subsidy-qualifying measures under its Inflation Reduction Act.
Article content
“I think this is going to change behaviors and sourcing strategies of battery manufacturers in the United States,” said Michael O’Kronley, chief executive officer at Novonix. “The cost of graphite imported from China is going to go up. This ruling essentially is going to accelerate some of those discussion we have with manufacturers.”
Article content
The new duties will add to existing rates making the effective tariff 160%, according to the American Active Anode Material Producers, the trade group that filed the complaint. China currently dominates the processing capacity of graphite, with the International Energy Agency in a report in May calling the material one of the most exposed to potential supply risks.
Article content
Article content
“Expectations of IRA benefits coupled with US-China decoupling are boosting investor sentiment and driving up the share prices of related companies,” said Namho Kim, general manager of Timefolio Investment Management in Seoul. “Battery material companies with lower reliance on China will emerge as key beneficiaries.”
Article content
Chinese suppliers including Hunan Zhongke Electric Co. and Jiangsu Baichuan High-Tech New Materials Co. traded slightly higher early Friday.
Article content
“The US is likely to be promoting the development of its own graphite industry by forcing domestic battery makers to switch suppliers,” said Eugene Hsiao, head of China equity strategy at Macquarie Capital. “Thus upstream suppliers of Chinese graphite anodes are more likely to be impacted.”
Article content
—With assistance from Hoi Yuet Woo.
Article content
(Adds details including company comment in second, fifth and sixth paragraphs)
Article content
English (US)