Days after the US tightened limits on shipments of AI chips to China, the Chinese ministry of commerce placed limitations on Friday on exports of graphite, a crucial element for electric vehicle batteries.
The government announced that it is going to start requiring export permits for some graphite goods in an effort to safeguard national security.
The biggest producer and exporter of graphite worldwide is China. It processes more than 90% of the world’s graphite to create the material needed for almost all electric vehicle anodes.
Chinese customs data indicates that South Korea, Japan, the US, and India are China’s top customers for graphite. Following the ministry’s announcement, stocks of China’s new energy vehicle and battery manufacturers increased. Similar restrictions have been placed on two other metals used to make chips, germanium and gallium, by China from August 1. Due to the limits, China’s exports of those metals have recently decreased, driving up prices abroad.
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