United States International Trade Commission Makes Affirmative Preliminary Determination in Trade Cases on Active Anode Material from China
WASHINGTON (January 31,2025) - In a preliminary victory for the U.S. industry, the U.S. International Trade Commission (ITC) decided on Friday, January 31, 2025, that there is a reasonable indication that the establishment of the domestic active anode has been materially retarded as a result of imports from China.
The ITC’s vote comes in response to petitions filed December 18, 2024, by the American Active Anode Material Producers (AAAMP). The petitions allege that the Chinese industry is dumping active anode material in the United States, distorting the U.S. market and preventing the establishment of an American industry. The petitions further allege that the Chinese industry is receiving unfair subsidies which further injure the domestic manufacturers, again preventing the creation of a U.S. industry.
“Foreign countries and producers that do not abide by international trade rules must be held accountable,” said Daniel B. Pickard, lead counsel to the petitioner and Buchanan’s International Trade and National Security Practice Group leader. “This vote takes the domestic industry one step closer to ensuring that U.S. active anode material producers can compete in a fair market. This case is important for both the U.S. industry and the U.S. national security interests in critical minerals.”
On January 15, 2025, the U.S. Department of Commerce announced the initiation of antidumping (AD) investigations into imports of active anode material from China. The dumping margins for imports are alleged to be as high as 915.74%. On the same day, the Department of Commerce also initiated a countervailing duty (CVD) investigation into the subsidies provided to the active anode material industry in China.
The Commission’s affirmative preliminary determination paves the way for the Department of Commerce to move forward with its investigations. Commerce is currently expected to issue its preliminary CVD determination in mid-March and its preliminary AD determinations in June 2025 (although these deadlines are subject to extensions). If Commerce reaches affirmative preliminary determinations in these cases, U.S. Customs and Border Protection will begin collecting AD and CVD cash deposits based on the preliminary margins calculated.
The Commission’s final phase investigation is expected to conclude in the beginning of 2026. If both the Commission and Commerce reach affirmative final determinations, AD orders on active anode material from China and a CVD order on active anode material from China will be issued, imposing duties on the unfairly traded imports for a minimum of five years.
The Buchanan team representing the petitioner also includes Milton Koch, Claire Webster, Brandon Custard, Amanda Wetzel, Caroline Bisk, Natan Tubman, and Grace Welborn.