SINGAPORE, Oct 20 (Reuters) – China said on Friday it would require export permits for some graphite products to protect national security, a new measure that aims to curb the export of key minerals to the energy transition.
Graphite, a soft form of carbon, is a key element for the production of electric vehicle batteries. According to the American Geological Survey (USGS), China is the world’s leading producer.
Here is the essential information you need to know.
USE FOR ELECTRIC VEHICLES
Until recently, graphite was mainly used in the steel industry.
Demand from the electric vehicle sector, however, is booming, with an increase of 250% globally since 2018, according to the USGS.
In terms of weight, graphite is the leading component of electric vehicle batteries, far ahead of lithium.
FIRST PRODUCERS
China is the world’s largest producer of graphite, providing 67% of global reserves of the raw material, according to the USGS. Then come Mozambique, Madagascar and Brazil.
China also refines more than 90% of the graphite used for electric vehicle batteries.
The main buyers of Chinese graphite are Japan, the United States, India and South Korea, according to Chinese customs data.
Automakers, including Tesla and Mercedes, are trying to build up stocks from non-Chinese producers.
SYNTHETIC GRAPHITE
U.S. and European companies are investing in the development of synthetic graphite, which could account for nearly two-thirds of the battery anode market by 2025, according to estimates from Benchmark Mineral Intelligence.
But China remains the leading producer country in this area: Chinese exports of synthetic graphics increased by 45% during the first nine months of the year, according to Chinese customs data.
OTHER RESTRICTIONS
In July, China announced export restrictions on eight gallium products and six germanium products, used in electronic chips.
These restrictions have weighed heavily on the volume of exports over the last two months, according to customs data. (Reporting Tony Munroe and Amy Lv; French version Victor Goury-Laffont, edited by Blandine Hénault)
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