China released plans to restrict graphite exports last week, days after the Biden administration placed new restrictions on advanced semiconductors that can be sent to the country.
Citing security and national interests, China will ban all high-quality, high-purity, high-density artificial graphite materials and related products from being exported out of the country without official permission, according to a joint announcement from the country’s Ministry of Commerce and the General Administration of Customs.
The new regulation against the critical mineral goes into effect Dec. 1.
The new restrictions could be cause for anxiety among some battery and EV makers. With uncertainty around how many exports will receive permission under the regulation, some might use the window before Dec. 1 to stockpile graphite supplies, according to Benchmark Mineral Intelligence, which specializes in battery material supply chains.
China is on pace to produce 67% of global natural graphite this year and dominates mining and production of the material, according to Benchmark Mineral Intelligence.
The possibility of graphite shortages has been a major concern in recent years, as automakers look to ramp up battery and EV production and take advantage of incentives from the U.S. government.
The Biden administration has labeled graphite a “critical mineral,” prioritizing it and other battery-grade materials, including lithium and cobalt, for investment. The administration’s $3 billion initiative to strengthen battery supply chains could include federal dollars for materials refining and production plants.
