China was the world’s largest graphite producer last year (representative)
Beijing:
China on Friday announced new restrictions on the export of certain types of graphite, essential for making batteries for electric vehicles, days after the United States imposed new restrictions on the outflow of high-tech microchips.
Washington said this week it would increase restrictions on exports of advanced semiconductors crucial for powering artificial intelligence systems – its latest attempt to curb Beijing’s access to advanced technology.
China has branded Washington’s policy unfair and imposed its own measures, saying in July that certain products containing gallium and germanium – key raw materials for chip production – would be subject to stricter export controls.
And under measures unveiled by the Commerce Department on Friday, exporters must apply for permits to sell two types of graphite to foreign customers.
“Based on the need to uphold its national security and interests, China has imposed export controls on certain graphite products in accordance with the law,” the ministry said.
Graphite is often used to make lithium-ion batteries for cell phones, electric vehicles (EVs), and other products.
According to the United States Geological Survey, China was the world’s largest graphite producer last year, accounting for an estimated 65 percent of total production.
The export controls include high purity, high strength and high density graphite material; and of course flake graphite.
Three other types of “highly sensitive” graphite materials on the list were already under temporary restrictions, according to the announcement.
Global graphite consumption is expected to skyrocket as demand for electric cars and the batteries that power them continues to grow.
The Commerce Department said the move was “conducive to better implementation of our international anti-proliferation and other obligations, and to safeguarding the stability of global industrial supply chains.”
“Recently, the Chinese government… made the decision to make optimizations and adjustments in the inflow and outflow of (graphite),” the report said.
“China’s normal adjustment of export controls is not targeted at any specific country or region, and exports that comply with relevant regulations will be authorized,” the report said.
Daniel Kollar, the Shanghai-based head of Intralink’s Automotive and Mobility Practice, told AFP: “This may be the most effective way for China to influence the battery market, as almost all lithium-ion batteries rely on graphite anodes and China holds the lion’s share of the battery. of the world market”.
“If strictly enforced, China’s export controls will help maintain and potentially grow the country’s position in batteries… leaving other countries’ battery companies at a disadvantage until alternative graphite sources can be found” , said Kollar.
“It exposes the fact that US and EU electrification plans are at risk without a high-risk battery supply chain.”
Trade and technology have been at the center of simmering tensions between Beijing and Washington in recent years.
The European Union has also indicated that it wants to reduce its dependence on trade with China in technological and other areas.
It launched an investigation this month into Beijing’s subsidies to domestic EV makers after accusations that their cheap products were undercutting European competitors.
The bloc is also considering a separate investigation into Chinese support for its wind turbine manufacturers.
Beijing has expressed “strong dissatisfaction” with the EV research and denied that its support for other industries is unfair.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
