TLG - Media, page-13945

Below taken from  (Full article link below )
https://juniorresourceinvesting.substack.com/p/itech-minerals-written-interview

1. New Chinese Graphite Restrictions


1a. Care to speak to the news out of China? What are the specific details?  How fundamental a disruption does this potentially become?


At this stage it looks more like the Chinese Government is asking exporters to apply for permits to export the higher value, technically difficult synthetic and natural flake graphite products rather than placing export restrictions in place. It will depend on how the government implements the permitting system. Given that the supply to end users outside of China of Gallium and Geranium was significantly impacted, it may have a similar effect, but it is too early to tell.


1b. Can you provide details/context maybe the average retailer won’t “get” or know?  Apply your expertise to shed some new understanding for us on what you think is relevant/important.


What I believe it does signal is that the Chinese Government is expecting to use all its internally produced supply within the country and is putting controls in place to make sure the Chinese producers have enough in the medium to long term. This leaves battery producers outside of China scrambling to source alternate supply chains for battery anode material.
1c. Other thoughts?


Combine the rush to secure battery anode material by battery producers outside of China along with the seasonal shutdown of natural flake graphite mines in Northern China over the next 6 months and we could see a coincident increase in demand with decrease in supply and a recovery of the fine flake graphite prices in the near future.