China Restricts Exports of Key Battery-Making Material
The Chinese government is restricting the export of graphite, a critical mineral in the manufacture of rechargeable batteries.
As Reuters reports, China claims export permits are required for graphite products in order to protect its national security. Access will be restricted to high-purity, high-hardness, and high intensity synthetic graphite material, as well as natural flake graphite and its associated products. Exporters will be required to apply for a permit from Dec. 1.
China is not only the top producer of graphite, it also handles 90% of graphite refining and counts the US, Japan, India, and South Korea as major buyers of the mineral. With export permits required, it seems likely many existing customers will find it difficult to continue sourcing graphite from China in the quantities they desire. Prices are also expected to increase significantly.
Graphite has a wide range of uses including for brake linings, steelmaking, foundry lubricants, and of course pencils. However, graphite is a critical component of battery making where it's used as an anode material. As an example of how important graphite is to this growing industry, currently each electric vehicle produced uses between 50-100kg (110-220 pounds) of graphite in its battery pack.
Other areas of the world that mine graphite include Brazil, Mozambique, Russia, Madagascar, Ukraine, Norway, North Korea, Canada, and India. In 2021, China took the top spot by mining 820,000 tonnes of the stuff. Brazil came a very distant second with 68,000 tonnes and other countries mined significantly less than that.
The decision to limit graphite exports follows the Chinese government's decision back in July to restrict exports of two metals vital for making chips:
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