Miners Race to Bring Graphite Project as China Curbs Exports

China controls graphite exports, and miners hold new projects to secure supplies for the next generation of electric vehicle (EV) batteries.

The Commerce Ministry of China said it will require permits for some graphite products to safeguard national security. Moreover, Beijing’s move reflects the protection of stockpiles of critical minerals and secures its manufacturing dominance.

The world’s top graphite manufacturer and exporter also processed more than 90% of the minerals used in EV battery anode. China disclosed last Friday that curbs will start on December 1.

Next-gen EVs are expected by 2025, and carmakers seek supply diversity due to pandemic-related parts shortages, minimizing overdependency on one country. In addition, car manufacturers have been investing directly in mining industries to guarantee their future supplies of battery inputs.

Furthermore, China leads graphite supply due to lengthy mining construction, securing its position for half a decade. In contrast, miners in other countries say that most projects are still pre-production.

Northern Graphite CEO Hugues Jacquemin sees China’s decision as unhelpful to EV manufacturers, urging them to find ways to make one.

China’s action surprised several sectors, with some consumers anxious about a more curbed outlook.

According to reports, automakers are silent while analyzing the verdict. With this, analysts expect graphite to surge imports as end-users might hoard to ensure their business’ running despite Beijing’s curb.

Experts See Imports Up Amid China’s Graphite Bans

Analysts expect consumers to purchase EV battery ingredients from China in November ahead of controlled exports for some products.

Leading graphite buyers from China include Japan, South Korea, the US, and India.

Global Graphite Advisory LLC CEO Tom Burkett anticipates increasing purchases and prices in November. Concurrently, Canada and Africa expect positive outcomes, following new producers in Australia, Brazil, and the US to experience a new investment round.

Furthermore, some anode makers in Japan and South Korea foresee a surge in acquiring graphite from China soon.

However, some battery manufacturers face challenges sourcing graphite for EVs amid extended safety testing, potentially taking up to three years.