China has revealed that it wants to control its graphite export which is used for making batteries in electric cars, CNN reported.
According to CNN, the Chinese Ministry of Commerce and the General Administration of Customs on Friday cited that the decision had been taken purely on grounds of national security.
The announcement comes just days after the United States imposed additional limits on the kinds of semiconductors that American companies can sell to Chinese firms.
“At the moment both China and Western countries are engaged in a tit for tat, highlighting how protectionist measures often spread. Newton’s third law that every action causes a reaction applies here, too,” CNN quoted Stefan Legge, head of tax and trade policy research at the University of St Gallen in Switzerland.
“At the same time, both sides of the dispute also realize how costly it is if geopolitics trumps economics,” he added.
The Institute for Energy Research reports that car manufacturers are making efforts to secure a stable supply of graphite from sources outside of China.
The global sales of electric vehicles, which include fully electric cars and hybrid models, are on the rise, as highlighted by the International Energy Agency.
In the past year, sales exceeded 10 million units, marking a 55% increase from 2021. It is projected that this figure will climb to nearly 14 million vehicles this year.
According to data from the US Geological Survey, the market for graphite used in batteries has expanded by 250% worldwide since 2018. China held the top position as the world’s leading graphite producer last year, contributing to approximately 65% of global production.
Furthermore, China has a significant influence over the global supply chain for critical minerals necessary for producing EV batteries. It is responsible for refining 60% of the world’s lithium and 80% of the cobalt, according to US Department of Energy.
According to CNN, the Chinese Ministry of Commerce and the General Administration of Customs on Friday cited that the decision had been taken purely on grounds of national security.
The announcement comes just days after the United States imposed additional limits on the kinds of semiconductors that American companies can sell to Chinese firms.
“At the moment both China and Western countries are engaged in a tit for tat, highlighting how protectionist measures often spread. Newton’s third law that every action causes a reaction applies here, too,” CNN quoted Stefan Legge, head of tax and trade policy research at the University of St Gallen in Switzerland.
“At the same time, both sides of the dispute also realize how costly it is if geopolitics trumps economics,” he added.
The Institute for Energy Research reports that car manufacturers are making efforts to secure a stable supply of graphite from sources outside of China.
The global sales of electric vehicles, which include fully electric cars and hybrid models, are on the rise, as highlighted by the International Energy Agency.
In the past year, sales exceeded 10 million units, marking a 55% increase from 2021. It is projected that this figure will climb to nearly 14 million vehicles this year.
According to data from the US Geological Survey, the market for graphite used in batteries has expanded by 250% worldwide since 2018. China held the top position as the world’s leading graphite producer last year, contributing to approximately 65% of global production.
Furthermore, China has a significant influence over the global supply chain for critical minerals necessary for producing EV batteries. It is responsible for refining 60% of the world’s lithium and 80% of the cobalt, according to US Department of Energy.
