Commerce Begins Section 232 Investigation on Vanadium Imports

The Commerce Department is launching a new Section 232 investigation that could lead to tariffs or other restrictions on imports of vanadium, according to a June 2 press release. The agency will determine “whether the present quantities or circumstances of vanadium imports into the United States threaten to impair the national security,” it said.

The investigation was requested in November by two domestic producers AMG Vanadium and U.S. Vanadium. They allege that “domestic industry is adversely impacted by unfairly traded low-priced imports, limited export markets due to value-added tax regimes in other vanadium producing countries, and the distortionary effect of Chinese and Russian industrial policies,” Commerce said.

A Commerce notice set for publication in the June 3 Federal Register says the agency will accept comments on the investigation by July 20, with rebuttal comments due Aug. 17. Comments should address the quantity of imports, domestic production and capacity needed to meet national defense requirements, and the impact of foreign competition on the vanadium industry, among other things.

According to the Commerce press release, vanadium is a metal used in alloys and as a catalyst for chemicals in a number of national defense and critical infrastructure applications, including “aircraft, jet engines, ballistic missiles, energy storage, bridges, buildings, and pipelines. Vanadium is a key component in aerospace applications due to its strength-to-weight ratio, the best of any engineered material,” Commerce said. “U.S. demand is supplied entirely through imports.”