In an effort to safeguard its national security interests, China's Ministry of Commerce has announced new export permit requirements on specific graphite products.
As the world's leading producer and exporter of graphite, China refines over 90% of the global graphite supply, with applications spanning virtually all industries.
Under the newly introduced regulations, which will be effective from December 1, China will mandate that exporters apply for permits to ship two categories of graphite products. These include high-purity and high-intensity synthetic graphite material, as well as natural flake graphite.
Simultaneously, temporary controls have been lifted from five less sensitive graphite items used in fundamental industries such as steel, metallurgy, and chemicals.
Natural graphite is classified as a critical raw material by the European Union, Japan, Canada, and the United States. Graphite demand is projected to surge by 25x between now and 2040, according to the International Energy Agency.
Despite this increasing demand, the vast majority of countries rely on imports to meet their graphite needs.
As governments worldwide seek to protect their access to essential resources and products, the burgeoning electric vehicle market is driving automakers to secure supplies from sources outside China. This strategy aims to avoid disruptions in supply chains, escalating costs, and potential production interruptions.
It is anticipated that these new developments may influence graphite prices in the foreseeable future. The evolving situation underscores the complex interplay between global trade dynamics and national security considerations in the modern industrial landscape.
Graphite explorers and developers are expected to see increased demand for their stock as domestic sources of graphite will become more crucial over the next decade
Below is a list of graphite stocks to buy in 2024 based on the near-term outlook:
For a full list of graphite stocks, news, and stock quotes visit: https://greenstocknews.com/stocks/battery-metal-stocks/graphite-stocks
Why is graphite important to electric vehicles?
Graphite is important to electric vehicles because it is a key component in the lithium-ion batteries that power these vehicles. Lithium-ion batteries are the most common type of rechargeable batteries used in EVs, and graphite plays a crucial role in their functioning.
Graphite is often used as the anode (negative electrode) material in the lithium-ion batteries used in EVs. The anode is responsible for storing and releasing lithium ions during the charging and discharging cycles. Graphite has properties that make it well-suited for this purpose. It can intercalate (absorb) lithium ions and release them during discharge, which is essential for the battery's operation.
Which countries produce the most graphite?
China has historically dominated the global graphite market, both in terms of production and consumption. It has supplied graphite to various industries, including the steel industry, refractories, lubricants, and the emerging lithium-ion battery industry.
China's dominance in graphite production has had a significant impact on the global graphite market, influencing prices and availability. The country's role in the production of graphite for lithium-ion batteries, in particular, has made it a key player in the electric vehicle (EV) industry.
