ANALYSIS
New regulations for graphite exports from China; the market goes into overdrive
As of December 1, 2023, Chinese companies will require a government-issued export permit to sell certain graphite products to Western entities.
This new regulation could well threaten supplies for battery and electric vehicle factories worldwide.
China is the world's largest producer and exporter of graphite, with a market share of over 60% in natural graphite and 99% in spherical graphite for battery anode material.
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This new measure is pressing battery and EV manufacturers to secure volumes and commercial agreements with graphite suppliers outside China.
- Mining companies outside China stand to benefit directly from the export restrictions, as manufacturers focus on securing long-term, reliable supplies of natural graphite ex-China.
- In the short term, the purchase of graphite by foreign companies will be more difficult, depending on how strictly China restricts export licenses. Manufacturers may start building up inventories in anticipation of these restrictions.
- In the longer term, this policy could accelerate the development of the battery supply chain in the West.
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» Battery Makers Hunt for Graphite Before China Controls Kick In
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Battery manufacturers are rushing to buy more graphite from China before export controls on electric vehicle battery ingredients come into effect in December.
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» China exposes EU and US vulnerabilities in graphite
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While the US and EU have focused mainly on securing supplies of cathode materials in recent years, the emphasis has not been on active anode material.
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» Panel : Powering the Energy Revolution
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A Lytham Partners' panel discussion with leaders in the battery supply chain, including Eric Desaulniers, sharing the latest trends, innovations and investment opportunities.
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An exceptional opportunity within the market
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» NMG is poised to become the largest producer of natural graphite in North America, with a vertically-integrated value chain from graphite concentrate to active anode material.
» With two exceptional graphite deposits in Québec, a portfolio of clean processing technologies, access to industrial infrastructure and clean hydroelectricity, and Phase-1 facilities already in production, NMG has a solid foundation to supply the Western market.
» With the continued commitment of leading battery manufacturers to sign offtake agreements and the confirmed interest of lenders and strategic investors to participate in project financing, NMG is working towards the launch of construction of its Phase-2 commercial facilities.
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Local • Reliable • Sustainable • Traceable
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