China said on Friday that it would require export permits for some graphite products to protect national security. The move has sprung a surprise with another bid to control critical mineral supply in response to challenges over its global manufacturing dominance. 

Under the new restrictions, China will require as of December 1 that exporters apply for permits to ship two types of graphite, including high-purity, high-hardness and high intensity synthetic graphite material, and natural flake graphite and its products. 

China is the world’s top graphite producer and exporter. It also refines more than 90 per cent of the world’s graphite into the material that is used in virtually all EV battery anodes, which is the negatively charged portion of a battery. 

“This bold and unexpected move by China in graphite has taken us by surprise, arriving far sooner than anyone could have predicted," said Kien Huynh, chief commercial officer at Alkemy Capital Investments, which is focused on developing projects in the energy transition metals sector. 

Beijing requires the export permits at a time when many foreign governments are ratcheting up pressure on Chinese companies over their industrial practices. 

The European Union is weighing levying tariffs on Chinese-made EVs, arguing they unfairly benefit from subsidies. Also, the US government earlier this week widened curbs on Chinese companies’ access to semiconductors, including stopping sales of more advanced artificial intelligence chips made by Nvidia. 

China’s graphite curbs are similar to those imposed since August 1 for two chip-making metals, gallium and germanium. The restrictions have slashed exports of those metals recently and pushed up prices outside of the country. 

The action is intensifying efforts among miners outside China to bring graphite projects to fruition while efforts to find alternatives will also be ramped up. 

“What China is saying to the West with this decision is that we are not going to help you make electric cars, you have to find your own way to do that,” Northern Graphite CEO Hugues Jacquemin said. 

China’s Commerce Ministry said that the move on graphite was “conducive to ensuring the security and stability of the global supply chain and industrial chain and conducive to better safeguarding national security and interests”. 

It added that it was not targeting any specific country. Top buyers of graphite from China include Japan, the US, India and South Korea, according to Chinese Customs data.