Huge news with graphite confirmed as a dual-use item. But what...

Huge news with graphite confirmed as a dual-use item. But what does it all mean?

“Materials such as graphite … are on the list and will be under export controls if their specifications meet China’s new rules.” (Link)

No doubt they will be targeting PSG.

These controls are substantially stricter than the current controls which were introduced late last year.

“Companies seeking to export dual-use items must obtain permission from the Chinese Ministry of Commerce. Previously, export was possible by simply registering.” (Link)

“According to the regulations, dual-use items shall be subject to strict controls … Businesses exporting dual-use items will now be required to disclose specific details about the end users and the intended use of the exported products. This ensures strict adherence to the end-user and end-use requirements, minimizing the risk of misuse for military or unauthorized purposes … Once an application is submitted, MOFCOM will conduct a review … within a timeframe of 45 working days.” (Link)

China will be approving exports on a case-by-case basis, and given their monopoly on PSG, they will effectively have complete control of ex-China anode production.

And we know they have precedent in exercising these controls, as they did during the 2010 rare earth export restrictions.

So just like LYC in 2010, are we about to see RNU re-rate from surging commodity prices as a result of these export controls?