China to curb exports of key battery material

The Star

China said on Friday (Oct 20) it will require export permits for some graphite products to protect national security, in its latest move to control supplies of critical minerals in response to challenges over its global manufacturing dominance.  WATCH MORE: https://thestartv.com/c/news SUBSCRIBE: https://cutt.ly/TheStar LIKE: https://fb.com/TheStarOnline

Transcript

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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