Will China’s graphite export controls impact the energy transition?

China's announcement of export licenses for EV-related graphite products has concerned battery producers, with few alternatives for critical components. While we expect delays to shipments as exporters grapple with the new system, we do not anticipate significant challenges in the medium term. China has highlighted the EV sector as a strategic pillar of its economic growth and it will be reluctant to jeopardise the industry. However, the change to the rules has highlighted the concentration of supply in China, leading to an increase in investment and supply chain diversification in response.