The US Takes Action Against China's Battery Materials Again! A Quick Look at the Overseas Layout of Top-tier Enterprises

According to China Trade Remedy Information Network, on May 20, the US Department of Commerce issued a notice on the preliminary countervailing duty determination for Active Anode Material imported from China. It was preliminarily determined that Huzhou Kaijin New Energy Technology Corp., Ltd. and Shanghai Shaosheng Knitted Sweat, which did not participate in the response, would face a countervailing duty rate of 712.03%. Panasonic Global Procurement China Co., Ltd./Panasonic Corporation of China and other Chinese producers/exporters would face a rate of 6.55%.

The US Department of Commerce is expected to make a final countervailing duty determination on September 29, 2025. This case mainly involves products under US HS codes 2504.10.5000 and 3801.10.5000.

According to media reports, the US Department of Commerce has preliminarily determined that there are subsidies for key battery components in China, believing that Chinese producers of active anode materials receive significant government subsidies, paving the way for the subsequent imposition of countervailing duties.

Reports indicate that US graphite producers are among the petitioners requesting the investigation. They demand an investigation into whether large-scale government subsidies in China have artificially lowered prices, making it harder for them to compete.

It is understood that in December 2024, the Alliance of US Active Anode Material Producers submitted a petition to US federal agencies, requesting an investigation into whether Chinese companies violated anti-dumping laws. The alliance hopes to impose punitive duties of up to 920% on Chinese graphite.

According to data from Capstone LLC, a consulting firm, China produces most of the world's graphite, and the US relies on China for 59% of its natural graphite imports and 68% of its artificial graphite imports.

Data from the "White Paper on the Development of China's Lithium-ion Battery Anode Material Industry (2025)" jointly released by research institute EVTank, Ee-energy Institute, and China Battery Industry Institute show that in 2024, global anode material shipments reached 2.206 million mt, up 21.3% YoY. Among them, Chinese anode material shipments reached 2.115 million mt, with the global share further increasing to 95.9%.

In the global anode material supply chain, China holds an absolutely dominant position. Meanwhile, overseas expansion has become a growing trend, which is a necessary choice for Chinese enterprises to actively integrate into the global industry chain reconstruction.

Wu Hui, General Manager of the Research Department at Ee-energy Institute, told Dianchiwang that the over 700% tariff is only temporary. Although it will exert pressure on the involved companies in the short term, given the industry characteristics and enterprise resilience, the impact will be relatively controllable and will not affect the development of the entire anode material industry.

From the perspective of the companies involved, only two Chinese anode material firms are currently directly affected. Some top-tier enterprises have already achieved localized supply through overseas capacity deployment, effectively circumventing tariff barriers. From the response strategies, Chinese companies have accumulated extensive experience in global operations and can quickly adapt through capacity relocation, supply chain restructuring, and technological cooperation. From the industry's resilience, China's anode material industry, with its cost advantages, technological accumulation, and economies of scale, holds an irreplaceable position in the global supply chain. Short-term tariffs are unlikely to undermine the industry's fundamental competitiveness.

According to EVTank data, in 2024, the threshold for the top 10 anode material shipment companies in China rose to 60,000 mt. The TOP10 companies include BTR, Shanghai Shanshan, Hunan Zhongke Shinzoom Co., Ltd., Shangtai Technology, Kaijin New Energy, Jiangxi Zichen, Guangdong Dongdao, Hebei Kuntian, Zhongsheng New Materials, and Xiangfenghua.

Against the backdrop of intensified competition, supply-side surplus, and persistently low product prices in the anode material industry, top-tier enterprises are increasingly expanding into overseas markets. Among the top 10 shipment companies, publicly listed firms or those with listed parent companies include BTR, Shanghai Shanshan, Hunan Zhongke Shinzoom Co., Ltd., Shangtai Technology, Jiangxi Zichen, and Xiangfenghua. In 2024, while their performance varied, all recognized the importance of overseas expansion. On one hand, it helps address geopolitical risks, trade protectionism, and supply chain instability, building a more resilient localized supply chain system. On the other hand, being closer to overseas markets enables better service to international customers, enhances market share, consolidates global competitive advantages, and meets the growing global demand for anode materials, securing a more favorable position in the global industry chain.

BTR (835185)

In 2024, BTR's anode material revenue was 10.692 billion yuan, down 13.04% YoY, with a gross margin of 27.76%, up 3.4 percentage points YoY.

By the end of 2024, BTR's operational anode material capacity reached 575,000 mt/year. In 2024, the company's anode material sales increased YoY, surpassing 430,000 mt.

In terms of overseas expansion, BTR's 80,000 mt/year anode material project (Phase I) in Indonesia commenced production in 2024, with capacity steadily ramping up. The Phase II project in Indonesia is under construction and is expected to start production in 2025, bringing the company's total anode material capacity in Indonesia to 160,000 mt/year. Additionally, the company is steadily advancing its cathode and anode material capacity in Morocco. Establishing overseas production sites is a key initiative in BTR's globalization strategy, building a more resilient localized supply chain system. This not only helps mitigate geopolitical risks but also brings the company closer to overseas markets, enhancing service to international customers.

BTR stated that the company chose to build a factory in Indonesia primarily due to the relatively small differences in various production factors compared to domestic conditions, as opposed to regions like Europe and America. This not only offers advantages in terms of cost and taxation but also ensures security in raw materials and transportation. The decision to establish a factory in Morocco was mainly based on its unique geographical location and trade status, which helps the company stay close to overseas markets and consolidate its global competitive advantage.

Shanshan Corporation (600884)

In 2024, Shanshan Corporation's anode material business achieved revenue of 8.196 billion yuan, up 12.80% YoY, with a gross margin of 18.45%, an increase of 6.68 percentage points YoY.

In 2024, Shanshan Corporation's anode material production reached 354,600 mt, up 27.09% YoY, with sales of 339,500 mt, up 28.44% YoY, and inventory of 50,000 mt, up 43.09% YoY.

To meet overseas market demand and enhance its overseas market share, Shanshan Corporation has planned to build a 100,000 mt anode capacity in Finland. The company will advance capacity construction and release based on market demand in the future.

Shanshan Corporation stated that the current international environment is becoming increasingly complex, with geopolitical conflicts and trade protectionism exacerbating the instability of the international trade environment. The instability and uncertainty of the global supply chain have significantly increased. Major countries and regions such as Europe and America, based on the protection and localization requirements of their domestic industry chains, may implement industrial policies that are unfavorable to the development of the overseas market for domestic lithium batteries. This could also affect the procurement demand of overseas customers for domestic companies. Overseas investment in anodes faces multiple risks, including geopolitics, legal compliance, economic fluctuations, cultural differences, intellectual property, and environmental responsibilities, which may increase construction costs, operational costs, and compliance risks, thereby constraining the company's global layout.

Shanshan Corporation said that the company will actively monitor changes in the international trade environment and dynamically respond to related risks; deepen strategic collaboration with overseas customers, and promote localized layouts driven by demand to enhance supply chain resilience.

Zhongke Electric (300035)

In 2024, Zhongke Electric's lithium battery anode segment achieved revenue of 5.193 billion yuan, up 14.91% YoY.

In 2024, Zhongke Electric's anode material shipments reached 225,700 mt, up 55.66% YoY, with production of 228,600 mt, capacity of 239,000 mt, and under-construction capacity of 86,400 mt. The capacity utilization rate was 95.66%.

In 2024, to further implement the company's international development strategy, expand overseas market business scale, and meet the needs of downstream customers, Zhongke Electric decided to establish a wholly-owned subsidiary in Hong Kong or other overseas regions through its controlling subsidiary Hunan Zhongke Shinzoom Co., Ltd. to indirectly invest in the establishment of a Morocco project company. This project will implement an integrated base project for the annual production of 100,000 mt of lithium-ion battery anode materials, with a total planned investment of no more than 5 billion yuan (subject to the actual investment amount). The project will be constructed in two phases, with each phase planning a lithium-ion battery anode material capacity of 50,000 mt/year, and an expected construction period of 24 months for each phase.

China Rare Earth Magnesium Technology Group Co., Ltd. (CREMT) stated that in overseas markets, particularly the European and US markets, trade and policy risks for Chinese lithium battery enterprises are gradually increasing, and enterprises within the lithium-ion battery industry chain are facing both challenges and opportunities. Against this backdrop, anode material enterprises that focus on both internal and external development, enhancing product competitiveness through internal improvements, and actively pursuing overseas layouts by leveraging global resource endowments, will be able to stand out and further enhance their competitiveness.

In terms of product R&D and promotion, CREMT will increase resource investment, fully expand overseas markets, increase the overseas sales share of its lithium battery anode business, and achieve the company's international development strategy.

Shangtai Technology (001301)

In 2024, Shangtai Technology's anode material sales revenue reached 4.707 billion yuan, up 25.97% YoY, accounting for 90.01% of its operating revenue.

In 2024, Shangtai Technology's anode material sales volume reached 216,500 mt, up 53.65% YoY, with a production volume of 226,800 mt, up 49.98% YoY, and an inventory of 17,100 mt, up 23.64% YoY.

In 2024, Shangtai Technology established a new sales center, Shanghai Shangtai, to serve domestic and overseas markets, and expanded its customer base both at home and abroad. It also established new subsidiaries in Singapore and Malaysia, namely Singapore Shangtai and Malaysia Shangtai. Singapore Shangtai is a wholly-owned subsidiary of the company, responsible for capital contributions to Malaysia Shangtai, which is the specific implementing entity for the company's project to produce 50,000 mt of lithium-ion battery anode materials annually in Malaysia.

Shangtai Technology stated that the proportion of Chinese enterprises is closely related to the rapid development of China's lithium-ion battery market. The global market is still in its nascent stage with significant potential. Chinese enterprises going global to compete, through diversified and localized investments and collaborations, building overseas production capacity, expanding overseas markets, and supporting the development of the global supply chain, will contribute to the further expansion of the global market and the common development and progress of the global industry chain.

In terms of customer development, Shangtai Technology will continue to increase its efforts in developing high-quality customers, particularly those in overseas markets, continuously enrich and optimize its customer structure, and increase its market share.

PTL (603659)

In 2024, PTL's anode material business segment, Jiangxi Zichen, achieved an operating revenue of 4.222 billion yuan and a net profit of 58.1002 million yuan.

As of the end of 2024, PTL had formed an anode material production capacity of 200,000 mt annually, including 150,000 mt of graphitisation processing capacity and 150,000 mt of carbonisation processing capacity.

In 2024, PTL's anode material production volume reached 136,700 mt, down 17.83% YoY, with a sales volume of 132,300 mt, down 14.81% YoY, and an inventory of 31,100 mt, up 16.44% YoY.

In the international market, PTL will focus on exploring the layout of anode material, base film, and coating processing capacities in Southeast Asia to meet the diversified supply needs of overseas customers. It will provide services to overseas battery cell and material enterprises through various forms such as equipment installation, commissioning, operation and maintenance, supply chain support, and technology and process licensing, offering localized solutions in the form of materials + equipment + operation and maintenance services + toll processing.

PTL stated that the international business and trade environment is influenced by multiple factors, including fluctuations in the global economic situation, geopolitical conflicts, and changes in trade policies, which introduce certain uncertainties. Major countries and regions, represented by Europe and the US, are continuously introducing localization policies for the lithium battery supply chain. If domestic battery producers and upstream supply chain enterprises fail to adapt to these policies in a timely manner and complete their global layout promptly, or if the costs of overseas raw materials and products rise significantly, they may lose some overseas orders and market demand.

Xiangfenghua (300890)

In 2024, Xiangfenghua's main business income recognized from the sales of anode materials amounted to 1.382 billion yuan, all generated from sales, representing a 17.51% decrease YoY, accounting for 99.55% of the total operating income.

In 2024, Xiangfenghua produced 75,100 mt of anode materials, up 13.31% YoY, sold 68,900 mt, up 11.13% YoY, and had an inventory of 6,326 mt, down 13.30% YoY. Its capacity was 90,000 mt, with 100,000 mt of capacity under construction, and the capacity utilization rate was 83.43%.

Regarding international market expansion, Xiangfenghua stated that the company is actively exploring the international market and is currently targeting internationally renowned lithium battery enterprises such as Volkswagen in Germany, SK On in South Korea, and Panasonic in Japan to further open up the international market. The company has passed various audits by Volkswagen in Germany and is supplying products in small batches.

It is foreseeable that with the localization of overseas production capacities, competition in the anode material industry will shift from "cost competition" to technological differentiation and supply chain resilience.

Looking ahead, EVTank expects that as downstream battery producers' differentiated demands for anode material performance gradually emerge, the competitive landscape among anode material enterprises will undergo significant changes. Products that excel in performance aspects such as fast charging, C-rate, and high capacity will stand out. On the other hand, the supply-demand relationship for anode materials is also gradually improving. It is expected that the industry will enter a more sound development stage by 2025, with the operating rates of first-tier enterprises further increasing and the business conditions of enterprises gradually improving in 2025.