China's recent move to strengthen export control measures on graphite products with dual-use capabilities, applicable in both commercial and defense sectors, is driven by the imperative to protect its national security interests and strategic concerns. These pivotal developments come in the wake of official pronouncements by the Ministry of Commerce (MOFCOM) and the General Administration of Customs of China (GACC).
In light of these measures, China is set to impose export controls on a range of graphite materials, including natural graphite and its derivatives, such as uncoated spherical graphite, coated spherical graphite, and expandable graphite, commencing from December 1, 2023. These controls complement the existing temporary export restrictions on high-purity and high-density synthetic graphite materials. As a result, this regulatory environment introduces significant uncertainties, administrative obstacles, and potential delays in the export of graphite materials originating from China.
These export controls underscore the importance of diversifying material supply chains, especially within the battery industry, as it plays a pivotal role in the transition to electric vehicle (EV) transportation. In the short term, this shift away from established sources of graphite in China towards potentially costlier alternatives has the potential to disrupt trade patterns and market segments. The introduction of a discretionary export licensing mechanism further emphasizes the control wielded by the Chinese Government over the future supply of Chinese graphite to international customers.
China has consistently held the position of the world's top supplier of both natural and synthetic graphite. With the largest graphite reserves globally, surpassing its closest competitors by a significant margin, China contributes 79% of natural and 78% of synthetic graphite production. Europe, in contrast, only provides 3% of natural graphite, with Ukraine being responsible for over half of that amount. Moreover, China's leadership extends beyond graphite production to encompass graphite processing and battery manufacturing, with about 60% of natural graphite anodes and 90% of synthetic graphite anodes concentrated in China. As of 2022, 100% of purified spherical graphite production takes place in China. Despite being the largest graphite producer, China also imports graphite due to its significant role in the processing and manufacturing of various products which further reiterates the role that China plays in the EV value chain.
Graphene, an extensively researched and explored alternative to graphite, represents a two-dimensional structure composed of carbon atoms bonded in a honeycomb lattice arrangement, characterized by its unique properties reminiscent of graphite. Notably, graphene boasts a relative surface area of 2630 m2/g, making it an exceedingly promising candidate for energy storage due to its minimal degradation during extended cycling. Moreover, its bonding characteristics confer upon it a remarkable combination of features: exceptional flexibility, exceptional strength, transparency, and the highest electrical conductivity.
The integration of graphene has enabled the successful testing and development of novel chemistries that were once only theoretically conceivable, resulting in the creation of advanced commercial products. For example, Graphene Manufacturing Group (GMG) has engineered graphene-based aluminium-ion batteries, which employ graphene and aluminium electrodes and have a theoretical energy capacity limit of 1050 Wh/kg. Another notable advancement can be observed in the case of Li-S (lithium-sulfur) batteries developed by Lyten, where the incorporation of a graphene membrane mitigates the polysulfide shuttling effect. This breakthrough translates to Li-S batteries with an energy density three times that of traditional lithium-ion batteries. Ceylon Graphene Technologies has ventured into enhancing lead-acid batteries, a well-established technology, by introducing graphene. Their research has yielded remarkable results, including a 15-25% boost in capacity, a 30-35% improvement in charging efficiency, and an impressive 50% reduction in water loss, all within the context of mature lead-acid battery technology.
Furthermore, Petronas has introduced "Procharge+," a graphene-based additive for lithium-ion batteries. This innovation enhances conductivity, thermal management, and the overall lifespan of conventional lithium-ion batteries. Beyond enhancing performance, graphene's integration has made batteries considerably safer. Nanotech Energy, for instance, has harnessed graphene to develop batteries featuring a proprietary non-flammable electrolyte, rendering them fire-resistant and functional in extreme weather conditions. This safety enhancement also contributes to an extended battery life, enabling over 1400 charge and discharge cycles, a significant increase compared to the typical 300-500 cycles of standard lithium-ion batteries.
A significant challenge faced by the majority of electric vehicles (EVs) relying on conventional lithium-ion (Li-ion) batteries is the presence of considerable issues related to thermal management and fire risks. Additionally, these batteries add substantial weight to EVs, resulting in decreased mileage efficiency. Graphene batteries, however, offer a transformative solution by not only enhancing safety and efficiency but also being exceptionally lightweight, which contributes to increased overall efficiency. In recognition of the growing concern among EV users regarding battery range, GAC Motor has introduced a graphene battery in its Aion V car, featuring a remarkable 6C fast charging capability, offering an impressive range of up to 1000 kms and the ability to reach 80% charge in just 8 minutes. This breakthrough addresses critical challenges and enhances the appeal of EVs for consumers.
A prevailing misconception is that graphene must be derived from graphite precursors. However, one of graphene's key advantages lies in its versatility in being synthesized from a diverse range of carbon sources. This flexibility expands the possibilities for carbon-containing materials, including biomass, carbon nanotubes, lighter hydrocarbon gases, coke residue from the petroleum industry, non-recyclable plastic waste, and even direct capture of carbon dioxide from the atmosphere. This adaptability not only broadens the potential sources of feedstock but also aligns with sustainability goals by enabling the recycling of carbon-rich materials and reducing atmospheric carbon levels. This also implies that graphene production can be established in various locations, enabling countries to achieve self-sufficiency in terms of anode materials. Versatility in graphene production techniques effectively addresses supply chain concerns while supporting global efforts to promote eco-friendly and circular economy practices.
The recent export restrictions on graphite products from China present an opportunity for the graphene industry to harness its potential and realize the true benefits of graphene in the battery industry. This transition not only makes batteries more efficient but also lighter, safer, and sustainable, accelerating progress towards a net-zero economy. As the global demand for high-performance, eco-friendly energy solutions continues to rise, graphene's role in diversifying supply chains and advancing sustainability is increasingly pivotal.
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