The world’s largest graphite producer, China, is restricting exports of the raw material, which is important for batteries in electric vehicles. Starting December 1, domestic exporters will be required to obtain export permits for several graphite products, the Ministry of Commerce in Beijing announced on Friday. The move is justified by “ensuring the security and stability of the global supply and industrial chain”. There was also talk of “better protection of national security and interests”. The measure is not directed against a specific country. China is the world’s largest producer and exporter of graphite. The country also processes more than 90 percent of the world’s graphite into the material used in virtually all electric car batteries. The main buyers of the raw material from the People’s Republic include Japan, the USA, India and South Korea, according to Chinese customs data. Experts see the export controls as a reaction to US sanctions in the technology sector. China also criticizes the fact that the EU Commission sees the European car industry in danger from cheap electric cars from China and is therefore considering imposing anti-dumping duties. Chinese exporters will now have to apply for approval to ship two types of graphite – including synthetic graphite material with high purity and hardness.
The German economy criticizes the announced export controls. “It is essential for the internationally closely networked German economy that the free exchange of goods, especially for critical raw materials, is secured worldwide,” said the head of foreign trade at the German Chamber of Commerce and Industry (DIHK), Volker Treier, to the news agency on Friday Reuters. “German companies are therefore very concerned about increasing protectionism and new export restrictions.” The federal government and the EU should work hard to support companies in diversifying their supply chains more, especially where there are strategic dependencies. “In addition to new trade and raw materials agreements with important trading partners, such as in the Indo-Pacific and Latin America, new instruments such as a raw materials fund are also conceivable,” said Treier.