China will limit graphite exports, which will negatively impact global production of electric cars and hybrids

The US has recently extended export restrictions on chip shipments to China. The authorities of the Middle Kingdom quickly prepared retaliatory measures.

Here's What We Know

China is the largest supplier of graphite, which is used in the production of batteries for electric cars. From 1 December 2023, exporters must apply to the authorities for a licence.

It should be noted that Chinese sanctions are not geographically bound, unlike American sanctions. But it is clear that the US, Japan, the Republic of Korea and India, which are the main buyers of Chinese graphite, could be affected.

From the beginning of winter, several types of raw materials will be subject to export control. Some of them have already been controlled, but without restrictions. After the rules are updated, controlling authorities will have more powers.

If supplies are restricted, manufacturers of electric cars and hybrids will be forced to look for new alternatives. This will have a negative impact on the cost of vehicles. In addition, prices and export volumes of Chinese graphite are expected to rise by 1 December 2023.

Source: Reuters