China will require export permits for certain graphite products from December 1 to protect national security, as it faces increasing challenges from foreign governments over its manufacturing dominance.
China is the world’s top producer of graphite, providing 67% of global supplies and refining over 90% of it into material used in EV battery anodes.
The move comes as foreign governments are increasing pressure on China’s companies over their industrial practices.
The European Union is considering tariffs on Chinese-made electric vehicles (EVs) due to their unfair subsidies.
The US has also increased restrictions on Chinese companies’ access to semiconductors, including halting sales of advanced Nvidia AI chips.
China will now require exporters of two types of graphite to apply for permits, including high-purity, high-hardness, and high intensity synthetic graphite material and natural flake graphite and its products.
China has imposed curbs on the export of gallium and germanium, two key metals used in chip-making, causing a decrease in exports from China.
The US and Europe are aiming to challenge China’s grip on graphite, with top buyers being Japan, India, and South Korea, according to Chinese customs data.