China limits graphite exports – Kommersant
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Today, October 20, Ministry of Commerce of China announced on introducing restrictions on the export of graphite, a mineral particularly used in the production of batteries for electric vehicles. From December 1, exporters will have to obtain a special permit to export certain types of graphite, as well as products made from them.
The ministry said the measures should “contribute to the security and stability of the global supply chain and production, and better protect national security and interests.” Previously, the Chinese authorities have already introduced temporary restrictions on the export of certain types of graphite.
This is not the first ban of this kind: in July, China already imposed restrictions on the export of the metals gallium and germanium, used in the production of semiconductors and other high-tech products. With such measures, China can respond to restrictions imposed by the United States on the sale of certain technologies and high-tech products. Reuters recently reportedthat the US is preparing to tighten restrictions on China’s access to chips and technology.
China produces 90% of all graphite in the world. The largest importers of graphite from the country are Japan, the USA, India and South Korea. “Such controls are not a complete ban, and previous restrictions have not had a significant impact on the industry,” said Ivan Lam, senior analyst at Counterpoint Research. However, in his opinion, new restrictions will most likely affect prices, so that “the average price of graphite will continue to rise due to the imbalance of supply and demand,” including from Russia, which was one of the main material suppliers.
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