U.S. Finds Chinese Active Anode Material Sold Below Fair Value

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U.S. Finds Chinese Active Anode Material Sold Below Fair Value

The U.S. Department of Commerce says that active anode material from the People’s Republic of China is likely being sold in the United States for less than fair value. This is a preliminary decision. The period being investigated is from April 1, 2024, through September 30, 2024. The Department is asking for comments on their decision.

Why This Matters

Active anode material is used in making batteries. It is a kind of graphite with a high purity of carbon — at least 90%. This investigation looks at the graphite whether it is coated or not. The product must also have a high energy density and be mostly made out of graphite crystals.

Scope of Investigation

The investigation covers active anode material from China. This includes materials that are powders, blocks, or liquids, and it covers the materials whether or not they have other things mixed in, like silicon. The product is included even if it is made as part of a battery or as part of a mixture. Most of these materials are categorized under the U.S. Harmonized Tariff Schedule codes 2504.10.5000 and 3801.10.5000. Other codes may also include these products.

How the Investigation Worked

The Department of Commerce looked at sales information from China. They used special rules because China is considered a non-market economy. Most companies did not show that they are run independently from the Chinese government. So, the Department treated those companies as part of the “China-wide entity.” A very high dumping margin was assigned to this group.

Dumping Margins

A dumping margin means how much cheaper the product is sold in the U.S. compared to its normal value. The Department found rates of 93.50% for most producer and exporter pairs who could prove they operated independently. For companies that could not prove this, the dumping margin is even higher: 102.72%. These rates mean the products are being sold for much less than their real value.

List of Companies Affected

Many companies are listed. Some examples:

  • Carbon ONE New Energy Group Co., Ltd.
  • Canadian Solar Energy Holding Company Limited
  • Farasis Energy (Zhenjiang) Co., Ltd.
  • Tesla Manufacturing Brandenburg SE
  • Tesla (Shanghai) Co., Ltd.
  • LG Energy Solution (Nanjing) Co. Ltd.
  • Panasonic Energy Nandan, Co., Ltd.
  • Samsung SDI Energy Malaysia Sdn, Bhd.
  • Hunan Zhongke Shinzoom Co., Ltd.

All these combinations are assigned a 93.50% margin. The “China-wide entity” gets a margin of 102.72%.

What Happens Next

U.S. Customs will stop releasing these products for regular sale. Importers will have to pay cash deposits based on the margins above. If the companies cannot prove they operate separately from the Chinese government, they will have to pay the highest margin.

These rules will last until the Department of Commerce makes a final decision. The Department plans to finish the investigation by November 2025. After that, the International Trade Commission will also check if these imports hurt U.S. companies.

How to Respond

People or companies affected can comment on this decision within 30 days. They can also ask for a hearing about this investigation.

More Information

This news follows the procedures in the Tariff Act of 1930 and other U.S. trade laws. The Department of Commerce will review all comments and issue a final decision. If there was a mistake in the decisions, the Department will make corrections.

Key Terms

  • Active anode material: Graphite used in batteries, high in carbon, with high energy storage.
  • Dumping margin: How much the import price is below its normal value.
  • Provisional Measures: Temporary rules to collect cash deposits on imports until a final decision is made.

This decision was posted by Christopher Abbott, Deputy Assistant Secretary for Policy and Negotiations, on July 16, 2025. The official Federal Register entry can be found at the U.S. Government website.


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