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WASHINGTON - The U.S. Department of Commerce has issued a preliminary determination imposing anti-dumping duties of 93.5% on graphite-based anode materials imported from China, according to a statement released by Westwater Resources, Inc. (NYSE American:WWR). The company, currently valued at $53.6 million, maintains a strong balance sheet with more cash than debt, though InvestingPro analysis indicates it faces near-term challenges with cash burn and profitability.
This ruling, announced Thursday, represents the second major decision targeting Chinese producers in the department’s ongoing investigation. In May 2025, the DOC issued an initial ruling that addressed countervailing duties, determining Chinese companies were receiving unfair government subsidies.
The latest decision concludes that Chinese manufacturers have been selling graphite-based anode materials in the U.S. market at unfairly low prices, harming domestic producers.
When combined with existing trade measures, the total import penalties on Chinese graphite anode material now exceed 160%, including a 25% Section 301 tariff, 30% retaliatory tariff, and countervailing duties ranging from 11.55% to 721%.
"The cumulative effect of the new anti-dumping duties, countervailing duties, and other tariffs in effect makes it economically clear that batteries built in the U.S. should use graphite made in the U.S.," said Jon Jacobs, Chief Commercial Officer of Westwater Resources, in the press release. Trading at $0.68 per share and a price-to-book ratio of just 0.34, InvestingPro data suggests the stock is currently undervalued, with analysts setting a $2.00 price target.
The DOC updated its May ruling on July 3, increasing the countervailing duty rate from 6.55% to 11.55%.
Graphite is a critical mineral used in electric vehicle batteries and energy storage systems. The U.S. currently has limited domestic production capacity for battery-grade graphite, with China dominating global supply chains. For deeper insights into WWR’s potential in this evolving market, InvestingPro subscribers can access exclusive analysis, including 8 additional ProTips and comprehensive financial metrics in the Pro Research Report.
Westwater Resources is developing the Kellyton Graphite Processing Plant in Alabama and owns the Coosa Graphite Deposit, which it describes as the largest natural flake graphite deposit in the contiguous United States.
In other recent news, Westwater Resources announced the receipt of a Notice of Allowance for a patent concerning graphite purification methods at its Kellyton Graphite Plant. The U.S. Patent and Trademark Office completed its examination of the application, which was initially filed in August 2021, and the patent is expected to be issued shortly. This development is part of Westwater’s ongoing efforts to advance its production capabilities in natural flake graphite, a critical component in lithium-ion batteries. Concurrently, H.C. Wainwright has lowered its price target for Westwater Resources to $2.00 from $2.50 while maintaining a Buy rating. The firm highlighted the potential impact of U.S. government actions to protect domestic graphite producers, which could serve as a significant catalyst for the company. The U.S. Department of Commerce has made a preliminary affirmative determination in its countervailing duty investigation of active anode material from China, imposing import tariffs of up to 721%. This move is part of broader efforts to ensure energy independence and national security, which could benefit Westwater Resources. The company is also in the process of constructing the Kellyton Graphite Plant in Alabama, which aligns with its strategic initiatives.
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