Novonix shares rise after preliminary ruling on China graphite exports
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More news: Shares in battery technology company Novonix lifted on the ASX after the International Trade Commission made a preliminary ruling that China suppressed the establishment of a domestic graphite industry in the US by exporting artificially cheap graphite.
Novonix shares gained 1.8% to 56 cents by 1:30pm AEDT, having lost more than 20% since the turn of the year.
Novonix welcomes preliminary ruling on China graphite exports
The news: Battery technology company Novonix has welcomed a preliminary determination by the International Trade Commission (ITC) that China suppressed the establishment of a domestic graphite industry in the US by exporting artificially cheap graphite.
The context: The preliminary determination comes after the American Active Anode Material Producers (AAAMP) — a group of graphite anode producers including ASX- and Nasdaq-listed Novonix — initiated a case with the ITC and the US Department of Commerce to investigate whether China is exporting natural and synthetic graphite used to make lithium-ion battery anode material at unfair prices to the US, and seeking import tariffs as a remedy.
The case will now proceed simultaneously before the ITC and the Department of Commerce. If the investigation proves conclusive, the Department of Commerce will assess the use of additional tariffs equal to the extent of unfair pricing by China, which currently has over 95% market share for battery grade graphite.
Novonix's Riverside facility in Tennessee, US, is poised to become the first large-scale production site dedicated to high-performance synthetic graphite for the battery sector in North America. It is slated to begin commercial production in early 2026, with plans to growth output to 20,000 tonnes per year to meet current customer commitments for Panasonic, Stellantis and PowerCo.
What they said: "China's strategic efforts to control the global critical minerals supply chain, fuelled by massive government subsidies with the clear intent of suppressing fair competition, are a threat to US energy and national security," said Novonix's interim CEO Robert Long.
"The ITC's ruling represents an important step towards levelling the plating field for US critical minerals producers and bringing transparency to the global marketplace.
"This will protect companies like Novonix from unfair predatory pricing practises by Chinese producers."
The source: ASX announcement
