AsianFin -- Battery materials may become a new target of U.S. President Donald Trump to curb the electric vehicle (EV), one of China's booming industries.

Credit：Xinhua News Agency

The U.S. Department of Commerce concluded that battery materials from China had been unfairly subsidized, Bloomberg cited a preliminary determination released on Tuesday. The department announced it found Chinese producers of battery materials are benefiting from subsidies worth as much as 721%, per the report.

The preliminary duties the U.S. Commerce Department announced are supposed to counter subsidization of materials in response to trade cases involving active anode material, a key component to batteries for EVs and materials such as graphite and silicon. It is expected that the department will make final decisions later this year.

U.S. graphite producers last December were said to seek Washington’s imposing hefty tariffs on Chinese imports of the crucial material used in electric vehicle (EV) batteries. A trade association representing U.S. graphite producers on December 18 submitted petitions to two federal agencies, asking for probe into whether Chinese companies are violating anti-dumping laws.

The industry group is aiming to trigger punitive tariffs of up to 920% on Chinese graphite in retaliation. It reportedly argued China’s massive state subsidies are artificially lowering prices and making it impossible for their companies to compete.

China earlier December has targeted several key minerals including graphite in a tit-for-tat move after the U.S. government furthered its export controls on the semiconductor industry. China's Ministry of Commerce (MOFCOM) announced on December 3 it made a decision to tighten the control over the export of relevant dual-use items to the United States, to safeguard national security and interests and fulfill non-proliferation and other international obligations.

According to the announcement that came into effect on December 3,  the export of dual-use items to U.S. military users or for military purposes is prohibited. In principle, the dual-use items related to gallium, germanium, antimony and superhard materials is not allowed to export to the United States, while stricter examinations on end-users and end-use purposes are to be conducted regarding exports of the dual-use item of graphite to the United States.