China restricts export of graphite products required for EV batteries
China's commerce ministry has announced that starting December 1, export permits will be needed for specific graphite products to safeguard national security. As the world's top producer of graphite, China plays a vital role in the electric vehicle (EV) battery industry. In fact, the country supplies 67% of the world's natural graphite and refines over 90% of it into material used in almost all EV battery anodes, according to the US Geological Survey.
New export permit requirements and global impact
Under the new restrictions, exporters of two kinds of graphite must apply for permits. These include high-purity, high-hardness, and high-intensity synthetic graphite material, as well as natural flake graphite and its products. Additionally, three "highly sensitive" graphite items already under temporary controls are part of the updated list. This decision comes as foreign governments ramp up pressure on China's industrial practices, with the EU mulling tariffs on Chinese-made EVs and the US broadening restrictions on Chinese companies' access to semiconductors.
Challenges to China's graphite dominance
Although new investments in the US and Europe aim to challenge China's dominance in graphite production, industry experts foresee a tough battle ahead. Top buyers of Chinese graphite are India, Japan, and South Korea, according to Chinese customs data. The export restrictions on graphite products resemble those implemented since August 1 for two chip-making metals, gallium and germanium, which have significantly reduced exports from China in recent months.
