They're just whinging because they were too slow to react and they're worried about the lack of demand the FEOC will create which will bite into their cathode business as well.
How can the largest component by mass in a LiB be deemed untraceable? Ex-China suppliers are making themselves very traceable.
Graphite, in particular, is more difficult to track because cell manufacturers frequently utilize a mix of both synthetic and natural graphite in their batteries - The cathode is a mix of lithium, nickel, cobalt and either manganese or aluminium yet they have no problem tracing those.
You may as well make the whole LiB untraceable
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