China’s export controls on graphite items are not a ban on exports

The latest statement from the Ministry of Commerce: China’s export controls on graphite items are not a ban on exports

China's export controls on graphite items do not prohibit exports. The Ministry of Commerce has successively received license applications from many enterprises. After review in accordance with laws and regulations, it has approved export applications that meet the regulations, and the relevant enterprises have obtained export licenses for dual-use items.

On January 18, the Ministry of Commerce held a regular press conference. Ministry of Commerce spokesperson He Yadong stated that China’s export controls on graphite items are not a ban on exports. The Ministry of Commerce has successively received license applications from many enterprises. After review in accordance with laws and regulations, it has approved export applications that meet the regulations, and the relevant enterprises have obtained export licenses for dual-use items.

In late December last year, China approved the export of spherical graphite materials needed for the production of lithium battery anode materials to POSCO Future M, a battery materials production subsidiary of South Korean steel giant POSCO Group. The company is the only leading secondary battery material company in South Korea that is involved in both positive and negative electrode materials.

In addition, reports say that China has also approved the export of finished graphite anode materials to South Korea's three major power battery companies - LG Energy Solution, SK Innovation and Samsung SDI.

Yonhap News Agency mentioned that since December 1 last year, China has further included natural graphite, anode material for secondary batteries, in the control list on the basis of artificial graphite. The Korea International Trade Association released a report in October last year, exaggerating concerns that "the export licenses of Korean battery companies with factories in the United States may be delayed or returned." It declared that it would strengthen the diversification of the graphite supply chain and actively develop silicon-based materials that can replace graphite. Anode material technology reduces supply risks.

However, Yonhap News Agency quoted supply chain sources as saying on January 14 this year that although the Chinese government has strengthened export controls on graphite items, it has approved applications for graphite export licenses submitted by Korean companies and others. “It can be said that Korean companies have There are no special problems in the import process of Chinese graphite." According to statistics from the Korean Ministry of Trade, Industry and Energy, South Korea imported artificial and natural graphite with a total value of approximately US$241 million in 2022, 93.7% of which came from China.