China will limit exports of battery raw material graphite

China will restrict exports of the raw material graphite from December 1 to ‘protect the country’s interests’. From that date, fewer export licenses will be issued for graphite, which is an important raw material for the production of EV batteries.

China’s Ministry of Commerce states that the country will ‘require export licenses for some graphite products to protect national security’, writes Reuters. China is the largest producer of graphite in the world. Two-thirds of global graphite production takes place there, according to NOS.

The measure is probably related to the increasing pressure from Europe and the US on the Chinese tech sector. The US announced new export restrictions earlier this month to prevent companies from selling certain AI chips to China that circumvent export restrictions. The European Union is considering imposing tariffs on Chinese EVs to prevent them from unfairly benefiting from subsidies.

It is not the first time this year that China has restricted raw material exports. The export of gallium and germanium has been restricted since August. These substances are used in the production of semiconductors. Of all the world’s gallium and germanium, 97 and 68 percent respectively are mined in China.