00:00 New restrictions announced in China could be unwelcome news for the growing electric
00:06 vehicle market.
00:08 Beijing said on Friday it will require export permits for some graphite products to protect
00:14 national security.
00:16 It's the latest move by the country to control supplies of critical minerals in response
00:20 to challenges over its global manufacturing dominance.
00:24 The reason this might hurt EV makers is because China refines more than 90% of the world's
00:29 graphite into the material used in virtually all EV battery anodes.
00:34 That's the negatively charged portion of a battery.
00:38 One analyst said South Korean firms heavily rely on the graphite imports from China but
00:43 would have to look elsewhere to the US or Australia, and that would likely raise the
00:48 cost burden for many.
00:50 Automakers are now racing to lock in supplies from outside China, but there could be shortages.
00:56 China will now require as of December that exporters apply for permits to ship two types
01:01 of graphite.
01:03 Beijing said the move was conducive to ensuring the security and stability of the global supply
01:08 chain and safeguarding national security.
01:12 China's decision comes while the EU considers tariffs on Chinese-made EVs, which it argues
01:17 unfairly benefit from subsidies.
01:20 The US government also widened curbs on Chinese companies' access to semiconductors earlier
01:25 this week.
01:26 Analysts said it was not clear how much impact the new measures on graphite will have in
01:30 the short term.
01:32 But on Friday, shares in China's new energy vehicle and battery makers rose after the
01:37 announcement.
01:38 The US government said China's new energy vehicle and battery makers will be required
01:39 to comply with the new tariffs.
01:39 The US government said China's new energy vehicle and battery makers will be required to comply with the new tariffs.
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