In a recent online release titled “TELF AG comments on some dynamics in the global graphite market,” TELF AG provides valuable insights into the distinctive dynamics of the global graphite market, a vital component essential for the production of electric vehicles. This comes in the wake of China’s announcement of new regulations aimed at curbing exports and implementing specific control measures for the export volumes of raw materials.
The article underscores China’s recent adoption of analogous measures for two other critical raw materials, gallium and germanium, exerting a significant influence on their market dynamics and global supply chains.
As per the article, this decision reaffirms China’s undeniable dominant role in the raw materials sector. It positions Beijing as one of the very few global economic powerhouses, alongside the United States, capable of shaping market trends through individual decisions concerning specific raw materials. This is exemplified by China’s recent actions regarding graphite (preceded by gallium and germanium). Furthermore, China boasts exceptional levels of production and refinement capabilities and has exhibited a clear political determination, as articulated by its authorities in recent years, to focus assertively on the mining and raw materials extraction sectors. This strategic direction aligns with the recognition that these materials will play a pivotal role in steering the world towards comprehensive sustainability.
The publication delves into the unique significance of graphite, of which China stands as the primary global supplier. This material holds immense importance in the functioning and construction of electric vehicles. In fact, each electric vehicle contains between 50 to 100 kilograms of graphite, surpassing the quantities of lithium more than twofold. The article also highlights additional pertinent data, affirming graphite’s substantial presence in these vehicles, accounting for over 30% of their composition—a significantly higher proportion than that of lithium and cobalt.
Among the anticipated consequences of China’s regulatory decision, as outlined in the article, are projected price increases for the raw material and an anticipated rush in procurement before the regulations take effect. For a more comprehensive understanding of these developments, we encourage readers to peruse the full publication.
