Mining
Tuesday, October 24th, 2023 2:27 pm EDT
Key Points
- China is imposing restrictions on the export of graphite, a vital material for electric vehicle (EV) batteries, as part of an ongoing critical minerals battle with the West. This move is seen as a response to Western measures targeting China’s high-technology sector.
- Graphite is a crucial component of EV battery anodes, and China dominates the global supply of both natural and synthetic graphite. This dependency on Chinese supply has raised concerns in the West, leading to investments in non-Chinese supply sources.
- While the West is considering potential responses to these export restrictions, the extent of China’s impact on the graphite supply chain and the specific parts of the EV battery sector these curbs will affect remain uncertain. The Western response may involve building domestic critical mineral supply chains and working with allied countries to secure mineral resources. The risk of further escalations in the metals sector as part of the global tit-for-tat is high.
The article highlights that China is reducing exports of graphite, a crucial raw material for electric vehicle (EV) batteries. This move is seen as a response to Western restrictions and tensions over critical minerals. Graphite, used in EV battery anodes, is a key component, with China dominating global natural and synthetic graphite production. This control has raised concerns in the West about supply chain dependencies.
China’s export restrictions on graphite, which are set to take effect on December 1, are raising questions about the extent of the impact on the EV battery sector. The ban specifically targets high-purity synthetic graphite and natural flake graphite, impacting the EV industry. Western governments are considering responses, including potentially challenging these export curbs at the World Trade Organization (WTO). Similar actions have been taken in the past when China restricted rare earth exports.
The article suggests that the ongoing struggle for control over critical minerals and the supply chain might lead to further escalations and countermeasures in the metals sector, especially as tensions continue regarding high-end semiconductor chips and minerals needed for advanced technology.
For the full original article, please click here: https://www.mining.com/web/column-china-ups-critical-minerals-heat-with-graphite-controls/
