Trade Petition Targets Chinese EV Material
Orbia, a materials company, has filed antidumping and countervailing duty petitions against China. The company alleges unfair trade practices for lithium hexafluorophosphate (LiPF6), a critical electrolyte salt used in electric vehicle batteries, opening a new front in the U.S.-China tech and trade war.
The petition targets a salt, lithium hexafluorophosphate (LiPF6), that is a critical and costly ingredient in the electrolyte of most lithium-ion batteries. This electrolyte is the medium that allows lithium ions to travel between the anode and cathode, enabling the battery to charge and discharge. Each EV battery can contain between 1.2 and 1.5 kg of LiPF6. Orbia's legal action comes as it is building the first large-scale LiPF6 production facility in North America, located in St. Gabriel, Louisiana. The project, supported by a $100 million grant from the U.S. Department of Energy, is expected to become operational in 2026 and produce 10,000 metric tons annually, enough to support the manufacturing of over 1 million EVs. The move aims to counter China's overwhelming dominance in the battery material supply chain. Chinese companies currently account for an estimated 95% of the global production of LiPF6 and over 80% of certain essential battery components. This near-monopoly is a key concern for U.S. economic and national security interests. This trade dispute is the latest front in a broader U.S. strategy to build a domestic EV supply chain independent of China. The Inflation Reduction Act provides significant tax credits for North American-made batteries and critical minerals. Concurrently, the U.S. has dramatically increased tariffs on Chinese EVs to over 100% and on lithium-ion batteries and parts to 25%. Orbia alleges that Chinese producers are engaging in "dumping," selling LiPF6 in the U.S. market at unfairly low prices, which suppresses the market and prevents domestic producers from establishing themselves. The petition asks the U.S. Department of Commerce and the U.S. International Trade Commission to investigate and impose duties to level the playing field. The case follows similar trade actions in the EV sector, including petitions targeting other battery components like active anode materials from China. It also mirrors previous disputes where foreign companies were accused of stealing trade secrets related to battery technology. China, in turn, has previously used its market position to retaliate against trade restrictions. In late 2024 and early 2025, Beijing implemented export controls and licensing requirements on other critical battery materials, such as graphite, citing national security concerns.
