Potential added tariff cost could be disruptive to solar industry, says Roth MKM

Roth MKM analyst Justin Clare notes that the American Active Anode Material Producers yesterday filed anti-dumping and countervailing duty petitions against imports of active anode material from China with alleged average dumping margins from 828%-921%, adding that the firm believes this case could have “a wide range of impacts” as the petition covers active anode material regardless of whether it is imported independently, as part of a compound, or in a battery. The firm, which believes the anode typically represents about 10%-15% of the cost of a battery, says a potential added tariff cost could be “disruptive to the industry” and a negative for suppliers that source anode material from China, directly or indirectly. Some names that the firm says could be impacted include Fluence Energy (FLNC), Stem (STEM), Enphase (ENPH), SolarEdge (SEDG), Energy Vault (NRGV), Clearway Energy (CWEN), Enlight (ENLT), Ormat (ORA), Sunnova (NOVA) and Sunrun (RUN).