After it was restricted from export by China, the United States, Japan and South Korea were shaken
China's decision to restrict graphite exports, announced five days ago, is causing an earthquake in the global auto industry, and the tremor is becoming increasingly strong.
South Korea moved the fastest, with the government's Ministry of Trade, Industry and Energy leading the formation of a "response working group" to ensure the supply of graphite.
Japan's Mitsubishi and Nissan are urgently discussing measures with partners such as Renault of France to explore the possibility of jointly purchasing graphite.
As for the American media, they are a little anxious to get on fire, and they are asking vigorously: what to do? What to do?
The Ministry of Commerce and the General Administration of Customs announced on October 20 that from December 1, synthetic graphite materials, including high-purity, high-strength and high-density varieties, as well as natural flake graphite, will need to obtain export licenses.
South Korea shook.
Zhang Yingzhen, the first official of the Ministry of Industry, Trade and Energy, presided over the "Civilian-Government Joint Meeting on Dealing with the Graphite Supply Chain" on the 23rd to discuss specific countermeasures, at which the battery industry called on the government to continue to maintain communication with China! After the meeting, the Korean government, the Korea Trade and Investment Promotion Organization and other institutions jointly launched the "Graphite Supply and Demand Response Working Group", and promised to maintain close communication and coordination with China through diplomatic channels such as high-level cooperation.
Japan shook.
Reuters reported on the 25th that Subaru's CEO said that he would work with suppliers to reduce the risk of purchasing battery materials for electric vehicles.
"We also do a lot of research on battery strategy," a Mitsubishi Motors executive said when asked by Reuters about China's graphite policy changes. Mitsubishi also said it may cooperate with Renault and Nissan to jointly deal with the upcoming risks of graphite procurement.
America shook.
The US "Investment" website reported that China's decision to restrict graphite exports caused the shares of the only graphite companies in North America to soar. Because graphite is a key mineral in the production of batteries for electric vehicles.
"As the supply of graphite decreases, will the U.S. electric vehicle industry struggle as a result?"
——The US "Automotive Weekly" published an article on the 24th that graphite is one of the important minerals needed to produce lithium-ion batteries, but the United States largely lacks the production of this key material. What to do?
You know, most of the graphite used in the production of electric vehicles in the United States is imported from China, Chile and Australia, not only that, but China has a near monopoly on the processing of graphite.
Discussions around lithium, graphite, cobalt and manganese have emerged that has surfaced a "geopolitical-like map" linking resources to producers, where China, according to the New York Times, is "far ahead."
What makes Americans even more heartfelt is that China is leading not only in graphite mining, but also in processing this mineral, and the media outlet goes on to highlight the readers: the bitumen coating process can increase the value of graphite by 50%.
It's no surprise that most of the materials needed to build modern electric cars aren't made in the United States. Although there is also some graphite in North America and lithium is also abundant, large areas are protected, so the point is that "none of these minerals can be used in Ford's future production plans."
What to do?
According to data from energy industry monitoring agencies, the current demand for graphite is roughly the same as the global production level, but this "harmony" will not last long. Graphite is expected to be in short supply by 2025, and industry insiders estimate that this will continue until 2033, as automakers in various countries set 2035 as the deadline for "all-electric vehicles".
In 2022, more than 10 million electric vehicles will be sold worldwide, up 55% from the previous year – feel the speed.
"Unfortunately for automakers, making automotive-grade batteries is nearly impossible without graphite."
The automotive industry publication has repeatedly emphasized that graphite makes up 95 percent of the anode of traditional lithium-ion batteries, requiring about 2 pounds of graphite per kilowatt of battery energy.
The picture shows a battery pack from General Motors on display in Michigan.
A little more science: although silicon can theoretically store much more lithium than graphite, the stability of silicon is a huge technical challenge, because its expansion and contraction rate in the charge-discharge cycle is often as high as 300%.
In other words, graphite, as a material for electric vehicle batteries, has not been reliably replaced so far.
What to do?
Northern Graphite, the only graphite company in the United States, shouted: It's time for Washington and the market to increase support for the graphite industry!
The U.S. government has yet to respond.
Perhaps Washington has another option.
The US "Investment" website gave readers a key point when explaining China's policy of regulating graphite exports: "The move is part of an escalating trade war between China and the United States, as the United States has recently imposed further restrictions on semiconductor exports to Chinese companies." ”
The picture shows the production workshop of Jixi Hagong High Carbon Graphite Material Co., Ltd.
Yan Yanxia wondered if graphite was already on the list of the next conversation between Minister Raimondo and his Chinese colleagues.