China’s decision to restrict graphite exports will have a significant impact on foreign makers of electric vehicle battery components who have not yet shifted to using as much synthetic material as Chinese counterparts, industry insiders and experts say.
China’s latest limit on critical mineral exports, which Beijing said is not targeted at a specific sector, has fueled uncertainty in the global EV supply chain. Some Chinese manufacturers, including those with operations overseas, say they expect limited impact from the rules as most EV batteries make use of a grade of synthetic material that is unaffected by the curbs.
China dominates the global EV battery supply chain, including the production of graphite – the single largest component. Graphite companies in the country process both the natural material mined domestically and overseas, as well as synthetic forms.
Under the new rules, China will require export permits, starting on 1 December, for high-end synthetic graphite, as well as key forms of natural graphite.
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