China ups export curbs on key EV battery component, safeguarding graphite amid US tensions

China will impose additional export restrictions on selected graphite products from December to safeguard national security, the country’s commerce ministry and customs authorities said on Friday, in the latest move to control the supply of critical raw materials amid rising tensions with the United States.

Graphite has been widely used for making batteries, fuel cells and lubricants for the machinery, petrochemical, defence and aerospace sectors.

Demand has risen in recent years as a raw material for electric vehicle batteries.

China is the primary source and producer of natural graphite, producing an estimated 65 per cent of total world supplies in 2022, according to the US Geological Survey.

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The nine items covered by the new restrictions include three types of high-purity, high-strength and high-density artificial graphite and its products, as well as six types of natural flake graphite and related products, according to the notice.

China will require exporters to apply for permits starting from December 1.

Chinese customs data showed the US, South Korea, Japan, Poland and India are among the top importers.

The latest restrictions are an updated and optimised version of temporary export controls imposed on seven graphite-related products since 2006, five of which have been removed due to their low sensitivity under the new rules, according to a statement from the Ministry of Commerce.

“It is a common international practice to impose export controls on specific graphite items. As the world’s largest graphite producer and exporter, China has long been firmly fulfilling its international obligations, such as non-proliferation,” the statement said.

“Based on the need to safeguard national security and interests, China has implemented export controls on specific graphite items in accordance with the law and implemented temporary controls on some graphite items.”

The renewed assessment on regulated items will help China better fulfil its international obligations on non-proliferation and safeguard national security and interests, while also ensuring the stability of the global supply chain, the ministry added.

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China restricts critical metal exports following Western semiconductor curbs in latest trade war

China restricts critical metal exports following Western semiconductor curbs in latest trade war

“China’s normal adjustment of export controls does not target any specific country or region, and exports that comply with relevant regulations will be permitted,” the statement said.

China has tightened its grip on the export of critical minerals as tech restrictions from Washington and its allies – especially on the semiconductor sector – continue to escalate.

Exports of the two critical metals and related products had surged before the controls went into effect in August, but have fallen in recent months.