China Imposes Export Controls on Graphite, Targeting the United States: Experts Say
China Imposes Export Controls on Graphite, Affecting Electric Vehicle Batteries
China has recently implemented export controls on graphite, a crucial component in the production of electric vehicle batteries. This move is believed to be primarily targeted at the United States.
China’s Motive and Impact on Prices
Industrial expert, Leonid Khazanev, suggests that China aims to tighten regulations on graphite exports to influence the American authorities and also increase global prices for the material. As a result of these controls, graphite prices are expected to rise by approximately 15-20%. China is the world’s largest producer and exporter of graphite, making their decision significant in the market.
Minimal Impact on Russia
According to Khazanev, Russia will not be significantly affected by China’s export controls. Russia’s annual production of 15-18 thousand tons of graphite is sufficient to meet most of China’s demand for the material.
New Export License Requirement
Starting from December 1, China will require a license to export graphite. The Chinese government has justified this decision by stating that it is in their national interests.
China’s Dominance in the Graphite Market
China holds the title of the world’s largest producer and exporter of graphite. This material is essential in the manufacturing of electric vehicle batteries and is purchased by major buyers such as the USA, South Korea, Japan, and Poland.
Response to US Restrictions and Western Concerns
China’s export controls on graphite are seen as a response to technology sales restrictions imposed by the United States. Western nations are now concerned that China may further restrict the export of other materials, including rare earths, in which it holds a dominant production position.