China to restrict exports of key EV battery material graphite, risking trade disputes and price hikes
-
China, the world's top graphite producer, will require export permits for some graphite products starting December 1st. This includes high-purity graphite used in EV batteries.
-
Graphite demand is expected to increase up to 25 times by 2040 due to EV growth. China supplies over 90% of refined graphite for battery anodes.
-
The export curb aims to ensure domestic graphite supply for China's military and EV battery makers. It follows similar export limits on rare earths and chips.
-
The move could escalate trade disputes between China, the EU and US. Prices for graphite are likely to rise as supply tightens.
-
China has just 16% of global graphite reserves. Turkey, Brazil, Madagascar and Mozambique have over 50% combined. This could spur diversification of supply.