China graphite export restrictions complicate U.S. EV supply chain

China graphite export restrictions complicate U.S. EV supply chain China's new restrictions on exports of graphite — a key material for electric vehicle batteries that the country has significant control over — is casting uncertainty on U.S. EV battery production. Effective Dec. 1, China requires export permits for certain graphite products, including high-end synthetic graphite and key forms of natural graphite that auto companies use to manufacture EV batteries. Graphite, which can come from natural or synthetic sources, is the main component in lithium ion batteries' anodes, and accounts for more mass than the lithium, cobalt, manganese and other materials used in the cathode and elsewhere in the battery. "The amount of graphite needed to feed those gigafactory beasts is in the neighborhood of a million tons per year, and the current capacity is zero in North America at commercial scale," said John DeMaio, president of Graphex Group, a graphite processor with roots in Hong Kong. "It's a wake-up call as to where the supply-demand mismatch is for a very key, critical element in battery manufacturing." And the U.S., where getting a new mining permit is a challenge, isn't even in the game. It's hard to overstate China's market power in graphite. Read the full story here. — John Irwin What you need to know

China graphite export restrictions complicate U.S. EV supply chain

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