China's Export Restrictions on Graphite Spurs Global Development of Alternative Sources for EV Battery Production

Approaches include the development of synthetic graphite and silicon-based battery tech, amid anticipation of increased cost and scarcity of power batteries due to China's graphite export restrictions.

China's curb on graphite exports, a critical electric vehicle (EV) battery material, has prompted industry executives and analysts to fast-track the development of alternative sources and materials. This process, however, will take time.
U.S.-based Graphex plans to challenge China's export restrictions by establishing a graphite-processing facility in Michigan by the end of 2024. The company aims to supply at least 10,000 metric tons of critical metal to U.S. automakers annually.
New investments in the U.S. and Europe are focusing on developing synthetic graphite to decrease reliance on China. By 2025, synthetic graphite might represent nearly two-thirds of the EV battery anode market, estimates Benchmark Mineral Intelligence.
Silicon, another anode ingredient that allows an EV to drive longer distances before recharging, is being explored. U.S. startup GDI is developing 100% silicon anodes for batteries to advance the performance of lithium-ion and EV.
China's export restrictions on graphite could result in an increased scarcity of the material, thereby raising the production costs for power batteries, leading to higher manufacturing costs for EVs. This comes as automakers are striving to secure supplies from outside China amid looming shortages.