USA, South Korea and Poland are the main destinations for Chinese graphite exports
(Rinnovabili.it) – China is ready to put a stop to exports of processed graphite, an essential component of modern rechargeable batteries. According to what was announced today by the Government starting from December 1st This year, Chinese companies will need special permits to take ore outside their country’s borders. A choice justified by Beijing with the desire to “protect national security” but which cannot help but worry the world economy.
Yes, because today the country brings the 49% of natural graphiteone of 34 critical raw materials identified by the EU. And it produces well 70% of the synthetic one obtained from fossil fuels, an expensive and polluting version but characterized by a greater density and thermal conductivity. If we consider the refined product (there are different grades of the material depending on the processing and density), the Chinese market share rises further, reaching almost 90%.
According to what was communicated by the Ministry of Commerce and the General Administration of Customs, the restrictions on graphite exports will concern only three grades of the material. Despite this, it is easy to imagine the tensions that will follow. Especially if we consider that the United States are among the main buyers, together with South Korea, Poland, Japan, and that the government move comes with perfect timing after the White House’s announcement that it wants to strengthen controls on the export of AI chips to China.
This commercial tug-of-war is nothing new. Nor is it the first time the People’s Republic has used its dominant position on supply chains to raise its voice. Restrictions similar to those imposed on graphite have affected several materials over the past few years. The last move? The one of 1 August 2023 on the export of gallium and germanium, two essential materials for the production of chips.
2023-10-22 08:48:42
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