China limits exports of key battery components

China will further close the tap on rare raw materials starting December 1. The Ministry of Commerce decided today to restrict graphite exports as of this date. This raw material is vital in the production of electric car batteries.

China says the measure is necessary for national security and “protecting the interests” of the country. China is by far the world’s largest producer of graphite. Approximately two-thirds of total graphite production comes from Chinese mines.

The restrictions on graphite exports are part of trade restrictions that China and the United States and the European Union impose on each other. Brussels is considering imposing additional taxes on electric cars from China because they would compete unfairly with plug-in vehicles in Europe due to state subsidies.

There is also a chip war going on with China. In response to the West’s decision to export precision chip technology, China has slowed down exports of rare raw materials:

Source: NOS