China’s Ministry of Commerce (MOFCOM) announced that it will impose export controls on certain kinds of graphite, effective on 1 December. China is the world’s largest producer and exporter of graphite, which is, among other applications, pervasively used in the anodes of Li-ion batteries.
According to the US Geological Survey (USGS), in 2022, China produced an estimated 65% of total world production of graphite. Approximately 24% of graphite produced in China was amorphous and about 76% was flake. China produced some large flake graphite, but much of its flake graphite production was very small, in the +200-mesh range. China also processed most of the world’s spherical graphite.
By contrast, North America produced only 1.2% of the world’s graphite supply in 2022, with production in Canada and Mexico.
Materials that meet the following characteristics will not be exported without permission:
High purity (purity > 99.9%), high strength (refracture strength > 30Mpa), high density (density > 1.73 g/cm) artificial graphite materials and their products.
Natural scale graphite and its products (including globular graphite, expanded graphite, etc.)
Exporters will need to go through the export license procedures in accordance with the relevant regulations, apply to the Ministry of Commerce through the provincial commercial authorities, fill in the application form for the export of dual-use items and technologies, and submit supporting documents.
The Ministry of Commerce will review the export application documents from the date of receipt, or review them in conjunction with relevant departments, and make a decision to approve or disapproval within the statutory time limit. The Ministry of Commerce, together with relevant departments, will report to the State Council for approval for the export of the items listed in this announcement that have a significant impact on national security.
If the license is approved after examination, the Ministry of Commerce shall issue an export license for dual-use items and technologies. If an exporter exports without permission, exports beyond the scope of the license, or has other illegal circumstances, the Ministry of Commerce or the customs department will impose administrative penalties in accordance with the provisions of relevant laws and regulations. If it constitutes a crime, criminal responsibility shall be investigated according to law.