With this measure, China is making our electric cars more expensive

Electric cars are expensive (although the Citroën ë-C3 is surprisingly affordable) and are likely to get more expensive. That’s because China just introduced new export restrictions on graphite.

China has the world on the ball, so to speak, as the country produces 60 percent of all lithium and 80 percent of all cobalt worldwide. Raw materials required for EV batteries.

Electric cars

Graphite is another material essential for battery production. That’s why the electric car industry is concerned about new measures by China to limit graphite exports.

Trade war with the USA

Why is China taking these measures? The official reason for this is to protect national security, but in reality it is a response to the US banning companies from exporting certain chips.

American manufacturers are not allowed to sell certain types of semiconductors to Chinese companies. In response, China is now restricting graphite exports.

The demand for graphite is enormous

This is quite a problem. The demand for graphite is enormous and China is the largest producer of graphite in the world. Since December, Chinese companies have required an export license for the material.

Car manufacturers are now trying to source graphite elsewhere, but it is difficult. China has the largest soil reserves of it of any country.

Electric car price

Europe and the United States have been engaged in a trade war with China for some time. In July, the country already imposed restrictions on the export of gallium and germanium, which are vital for chipmakers.

The price of graphite is expected to continue to rise and with it the cost of electric cars. In addition to China, Russia is also an important producer of the material.