US-China , Trade War Escalates, , Potentially Driving Up EV Prices.
Prices for electric vehicles (EVs) in the United States may surge higher as a result of China's new export controls on graphite, an essential material for EV batteries.
On October 20, China announced its new controls on export permits for certain products containing graphite.
'Newsweek' reports that the move highlights China's push to safeguard its manufacturing supremacy, currently controlling 90% of the world's graphite production.
Between January and September, the U.S. received an estimated $745 million in China-sourced graphite, making it the top importer of the commodity.
The new controls are being put in place as the U.S. clamps down on the export of high-performance integrated chips to China.
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The U.S. reportedly intends to stifle Beijing's development of AI and semiconductor technologies.
'Newsweek' reports that the U.S. measures are part of a broader plan to minimize potential threats to national security posed by China's rapid technological advances.
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Both China's new export controls and America's measures on imports are part of a larger geopolitical battle over technologies and resources.
This action could set [prices] on an upward trajectory internationally, while keeping domestic prices low for Chinese battery producers, Tom Kavanagh, head of battery metals at Argus, via Reuters.
'Newsweek' reports that China's new export controls have raised the stakes for automakers and battery manufacturers, who now need to reevaluate supply chains.
