The European Carbon and Graphite Association has called for an urgent response from the EU to the announcement that China will implement export controls on certain types of graphite from Dec. 1 to safeguard national security and interests.
In a statement to S&P Global Commodity Insights received on Oct 20., Secretary General of the European Carbon and Graphite Association Dr. Corina Hebestreit said that Chinese restrictions on exports of natural and synthetic graphite will have an impact on European supply chains including those supporting the battery, semi-conductors and renewable energy industries.
“We have been alerting the policy makers to the importance of natural and synthetic material for Europe’s industry and green transition,” she said.
“In its latest policy documents the EU had identified the need to reduce import dependencies and had identified natural graphite as critical and strategic, but not the synthetic graphite, which is equally important since both are used for a large variety of applications, sometimes in combination to ensure optimal performance,” she added.
In anticipation of the forecasted shortfall in supply and rising demand, the European graphite industry has established a strategic partnership on Europe’s sustainable carbon and graphite supply chain, the association announced Oct. 19.
According to Hebestreit, this partnership is intended to address the current policy and investment framework in Europe that is hindering the upscaling of natural and synthetic graphite production in Europe.
“Today’s announcement of the Chinese government makes this partnership and an urgent response from EU and Member States governments even more important, she said.”
European market stakeholders reacted with concern at the announcement from China.
The CEO of silicon anode manufacturer GDI, Rob Anstey said that reliance on China for the future of lithium-ion batteries was “unacceptable.”
“Today’s news that China is starting to restrict graphite for batteries and EVS is alarming,” he said.
“China is decades ahead in graphite and it’s too late to catch up. We must move towards the next level of Li-ion and EV performance,” he added.
CEO of independent advisory Supply Chain Insights, Andy Leyland said that the export are likely to be accelerate the development of up and coming producers outside China.
“This is straight from China’s commodities playbook and a direct response to moves in the West to legislate a move away from the country”, he said.