China announced plans on Friday to restrict exports of graphite, an essential ingredient in building batteries for electric vehicles, on national security grounds, according to the Ministry of Commerce and General Administration of Customs.HOUSE GOP CONFERENCE VOTES TO ABANDON JORDAN AS SPEAKER NOMINEE
China stands as the world’s most prominent producer and processor of graphite, accounting for an estimated 65% of total production, according to the U.S. Geological Survey. The mineral is used virtually in all EV battery anodes, which are the negatively charged portion of the battery. This could escalate an already tense trade war between Washington and Beijing, which have gone toe to toe over the last year on access to computer chips and the equipment to make the chips. However, how significant the new rule will be depends on how strict China is on the licensing requirements in the coming months.
In July, Beijing imposed export restrictions on gallium and germanium, two minerals that are needed to make semiconductors. A month later, following the regulation, China’s export of the minerals fell to zero.