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. .
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. .
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.