Graphite buyers to boost imports ahead of China's curbs - analysts
By Polina Devitt and Amy Lv
LONDON/BEIJING (Reuters) — Some graphite consumers will aim to accelerate imports of the EV battery ingredient from China in November before the country's export curbs for some products come into force, but it may be difficult due to complex specifications, analysts said.
China, the world's top graphite producer and exporter, said on Friday that from Dec. 1 exports of some types of natural and man-made forms of graphite would require permits.
Graphite is used in virtually all EV battery anodes, which is the negatively charged portion of a battery.
«I expect we will see a surge in November of both buying and prices,» said Tom Burkett at consultancy Global Graphite Advisory LCC.
Existing producers in Canada and Africa will receive an immediate positive impact with new producers in Australia, Brazil, Africa, Canada and the U.S. likely to experience a new round of investment to move to production as quickly as possible, he added.
The curbs are similar to those in place since Aug. 1 for two chip-making metals, gallium and germanium. Their announcement boosted China's exports in July as overseas buyers rushed to lock in supply, while the launch of the restrictions slashed exports in August-September.
Companies, however, are now beginning to get Chinese licenses for gallium and germanium, said James Willoughby at Wood Mackenzie.
«I would expect a similar scenario for graphite: an initial slow down and a gradual restart.»
China produces two-thirds of the global natural graphite and dominates production of its synthetic version. It also makes more than 90% of the final processed material for EV battery anodes.
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