With the rapid development of the electric vehicle and energy storage markets, the demand for graphitized petroleum coke is also increasing. Especially in high-performance lithium batteries, the growing demand for anode materials is further driving the market demand for graphitized petroleum coke.

【Anode】Can Chinese Anode Exports Remain 

Profitable After U.S. Tariff Hikes?

On February 3 (local time), U.S. President Donald Trump signed an executive order postponing the imposition of tariffs on goods from Mexico and Canada until March 4, 2025.

Just two days earlier, Trump had signed another executive order imposing a 10% tariff on Chinese imports and a 25% tariff on imports from Mexico and Canada.

Reports indicate that on February 3, Trump spoke with Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum. After securing commitments on border issues from both parties, Trump decided to delay the tariffs on Mexico and Canada.

This suggests that the previously announced 25% tariff hike was merely a pressure tactic aimed at addressing border concerns rather than a genuine intention to tax America's allies.

However, when it comes to China, Trump has not rushed to engage in direct discussions with Chinese leaders to defuse tensions in what could escalate into a new trade war between the world's two largest economies. When asked about China's retaliatory tariffs, Trump responded, "That's fine!"

The new U.S. tariffs on Chinese imports took effect at 12:01 a.m. EST on Tuesday (05:01 GMT) and apply to $450 billion worth of Chinese goods.

Before the trade war, U.S. tariffs on Chinese goods averaged 3%, while those on other countries were around 2%. After the trade war, tariffs on Chinese imports surged to 19.3%—a sixfold increase.

The Heavy Burden on the Anode Industry

How much additional tariffs can Chinese anode material manufacturers bear?

According to data, in 2024, the gross profit margin of Chinese anode material companies ranges from 5% to 20%. If the additional tariffs are split equally between Chinese exporters and importers, the maximum sustainable tariff burden would be around 30% to 40%. Any further tariff increases could completely erase the profitability of Chinese exports.

Although China has introduced countermeasures—announcing on February 10 that it will impose retaliatory tariffs of 15% on U.S. coal and liquefied natural gas, and 10% on crude oil, agricultural machinery, large-displacement cars, and pickup trucks—the most immediate impact will still be on direct trade.

The U.S. is China's third-largest export market for anode materials. In the short term, tariff hikes will inevitably lead to a decline in China's export share. Moreover, Trump may further expand the scope of tariffs on China or raise rates, particularly targeting strategic sectors such as the new energy supply chain.

Despite this, the anode industry remains highly concentrated, and China continues to dominate the artificial graphite sector with its high cost-performance advantages. This makes short-term substitution difficult. However, to maintain premium pricing, the industry must accelerate advancements in high-end products such as silicon-based negative electrodes.

Statistics show that in 2024, global anode material production reached 2.1673 million tons, with China accounting for 98.5%. In terms of sales volume, the global total reached 2.0873 million tons, with China's share at a staggering 98.4%. This means that the primary impact of U.S. tariffs will be an accelerated shift toward overseas production by Chinese companies.

Accelerated Overseas Expansion Amid Tariff Pressures

This urgency to establish overseas production facilities explains the recent surge in overseas expansion by Chinese anode material enterprises. Over the next year, tariff hikes will undoubtedly accelerate the pace and scope of these companies' global expansion.

Furthermore, given the strong purchasing power in North America and Europe, overseas production offers Chinese firms greater flexibility to focus on high-end products with higher profit margins, rather than engaging in domestic price competition.

Global Anode Production and Growth Trends

(Data Source: ICC Xinluo Information)

In the long run, escalating tariffs between China and the U.S. will disrupt global trade patterns. However, for Chinese negative electrode material companies, this disruption could also serve as an opportunity—forcing firms to expand into alternative markets such as Europe (particularly Russia, which is less affected by carbon tariffs), Southeast Asia, and Africa.

At the same time, global supply chain security concerns will drive the establishment of localized production networks.

· On one hand, Europe, North America, Japan, Southeast Asia, and Africa will gradually develop domestic anode material manufacturers. Northern Europe and North America are likely to focus more on natural graphite anode materials.

· On the other hand, Chinese companies will accelerate their overseas plant construction. However, before launching these projects, companies must first secure supplier and downstream partnerships to mitigate investment risks and streamline future operations.

Key Industry Event: The 2025 Lithium Battery Anode Materials Summit

As the premier conference in the industry, past editions of the Lithium Battery Anode Materials Market & Frontier Technology Summit have attracted key players across the supply chain, with over 1,500 attendees at the previous event.

This year, the 18th Lithium Battery Anode Materials Market & Frontier Technology Summit and the 7th International Natural Graphite & Application Market Summit will be held in Changzhou from March 12-13, 2025.

The event has already secured participation from leading automakers in Germany and Japan, who are looking for anode production equipment suppliers for local manufacturing projects. Additionally, buyers from India and South Africa are attending the forum to seek strategic partners.

To facilitate these collaborations, the event will feature exclusive business matchmaking sessions, providing a direct and efficient platform for supply chain integration and global business opportunities.

Feel free to contact us anytime for more information about the artificial graphite anode market. Our team is dedicated to providing you with in-depth insights and customized assistance based on your needs. Whether you have questions about product specifications, market trends, or pricing, we are here to help.