A coalition of North American graphite producers has urged the US government to impose a staggering 920% tariff on Chinese suppliers of graphite, a crucial material used in electric vehicle (EV) batteries. The American Active Anode Material Producers (AAAMP) has urged the US to hike up the tariffs on Chinese graphite import by 920%, citing that the current 25% tariff is insufficient.

AAAMP, a group of US and Canadian graphite producers, has formally requested the US Department of Commerce and the US International Trade Commission (ITC) to investigate whether China is exporting natural and synthetic graphite to the US at "unfair prices." This request, which was made on Wednesday December 28, highlights concern over what the miners describe as Beijing’s “malicious trade practices” that undermine fair competition in the US battery metal sector.

The group claims that Chinese competitors can produce graphite at a significant cost advantage due to lower labor and environmental standards. This enables them to ramp up production quickly and sell at prices that US producers cannot compete with.

The proposed 920% tariff would, the group argues, level the playing field by making Chinese graphite less competitive in the US market.

Graphite, the largest component by volume in EV batteries, can either be synthetically produced or processed from natural sources. China, already the world’s largest producer of both types of graphite, has expanded its dominance over the global supply chain. It exerts a tight control over extraction and processing of graphite. Earlier this month, Beijing had imposed restrictions on graphite exports to the US, adding urgency to the push from American miners for stronger trade protections.

The push for higher tariffs is part of a broader effort by Western critical minerals suppliers to reduce reliance on China, which dominates the extraction and processing of key materials for EVs and electronics. US manufacturers have increasingly raised concerns about China’s growing influence in the global critical minerals supply chain, particularly in light of Beijing’s recent moves to restrict exports of materials essential for EV production.

However, not all US companies are in favor of tariffs. Jervois Global, a firm that was forced to shut down its only US cobalt mine due to competition from Chinese producers, has expressed opposition to blanket tariffs. Instead, the company has suggested that manufacturers be required to source metals from Western suppliers, rather than relying on punitive measures against Chinese products.

As the US government evaluates the request, the outcome could have significant implications for both the graphite industry and the wider push for energy independence in the critical minerals sector.