Why did the graphite move to the trade fight between America and China?

Graphite recently became a new point of view in the increasing trade conflict between the United States and China because of its strategic interest and Washington’s dependence on it in exchange for the dominance of Beijing on its production. This mineral is an essential component in the production of electric car batteries and modern green technologies, as China dominates its production worldwide with a share estimated at more than two -thirds, according to the US Geological Survey, which is the most important United States supplier dependent on importing the needs of its industries, as the import of about 180 thousand metric -tone of China. This reality places a direct commercial conflict between the two largest economies in the world, as Washington imposed high customs duties on Chinese graphite imports on the pretext that Beijing is not supported fairly, and in return China emphasizes the limitations of performing this important mineral on the pretext to protect the “national security”. Graphite thus has become a prominent example of how biomedia transforms into pressure tools into economic and technological competition between the poles of the world economy. What is graphite and why it has become a strategic mineral? Graphite is one of the forms of carbon element in nature, and its importance has increased tremendously with the current upheaval in the production of batteries on which electric cars and modern energy storage fall within the global transformation to electric transmission and clean energy. From this point of view, industrialized countries regarded it as a strategic mineral because of its important role in clean energy chains and green technologies. It is arranged by the United States and international bodies as a list of critical minerals needed for the economy and national security. The expectations of “S&B Global” indicate a tremendous growth in global demand for graphite during the current decade; The demand for IT will increase from about 790 thousand tonnes in 2023 to more than 3.1 million tonnes by 2030, powered by the increase in the production of electric cars and energy storage systems. How did China take control of the global graphite supply chain? China is the largest producer and exporter of natural graphite in the world, but more importantly, it controls the processes of processing and conversion of the appropriate form of use in batteries. China pure and refine more than 90% of the world’s production of graphite and convert it into ready -made anode for use in batteries for electric vehicles. China’s share has reached about 79% of the global production capacity of natural graphite, and about 90% of the capacity of the artificial product used in batteries. The highest ten countries in the global graphite production in 2024 the land production 2024 (metric tons) reserves (metric tons) the share of the global production ( %) China 1,27 million 81 million 79.4 Madagascar 89 thousand 27 million 5.6 Mozambique 75 thousand 25 million 4.7 Brazil 68 thousand 74 million 4. 1.7 thousand 18 thousand 18 thousand 18 thousand 1.6 1.6 1.6 thousand 8.6 million 1.7 1.7 1.7 thousand 18 thousand 1.6 1.6 1.8 thousand 8.6 million 1.7 1.7 thousand 14 million 1.2 %canada 20 thousand 5.9 million 1.2 %south -korea 9.6 thousand 1.8 million 0.6 North Korea 8.1 thousand 2 million. To impose graphite sources, thanks to its investment over decades in the development of mining and processing industries for different strategic metals, which utilizes the benefit of the abundance of human resources and low costs and essential environmental laws compared to the West. Over time, Chinese companies have become several semi -exclusive supplies for the material ready for batteries, and even if this mineral is extracted from mines in Africa or other places, it is regularly sent to China to equip and manufacture it permanently. The International Energy Agency has described excessive dependence on China in the field of graphite as one of the biggest danger resources in metal supply chains for the transitional phase of energy, which emphasizes the urgent need to diversify its sources. The crisis of customs duties .. How has the conflict recently escalated? With the intensification of geopolitical competition between the United States and China in the field of Green Technologies, tension over graphite escalated through commercial measures that arouse a ‘commercial war’ over this mineral. The beginning of the escalation comes from Beijing at the end of 2023, when China announced the imposition of new restrictions on the export of a high quality graphite used in batteries, under the pretext of “national security”. From December 1, 2023, China obliged the export of special licenses to download specific categories abroad, including natural graphite categories as chips and products, as well as some purity and hard industrial forms. On the other hand, China has lifted temporary restrictions on 5 less sensitive graphite products used in industries such as steel and chemicals, in an effort to ensure the markets target the most important areas (batteries) without fully stopping exports. Although China claims that the move does not target a specific country, many people have seen it as a commercial printing card in the face of the West, especially as it came in the midst of other tensions (such as the European Union’s investigation in China’s support for the electric automotive industry, and US measures to prevent the advental leaders to Beijing). Who are the winners and losers of geopolitical risks and supply safety? Western officials have repeatedly said that the focus of the production of critical materials in one country is a dangerous weakness. The primary danger is the issue of supply safety: When countries such as the United States, South Korea or European countries are dependent on China to meet most of their graphite needs, supply chains are vulnerable to serious disturbances as Beijing decides to limit any political or economic reason. On the other hand, the winners also emerge, which are mining companies and graphite production outside China, which is in a strong position to reap the fruits of high prices and strategic transformations. Graphite businesses in North America jumped immediately after the announcement of the US fees, as investors saw that the protection of customs would give local producers a golden opportunity to expand their market share. For example, the US company “Westwater Resources” said that the new fees offer political clarity and a market signal that accelerates its plans to increase local production, and the share rose 15% on the day of advertising. Other countries rich in graphite tarts are also a candidate to take advantage of the pursuit of imports of countries to diversify the resources, including Mozambique and Tanzania, which attract attention and investments as potential partners to provide the graphite to South Korea and the West. The South Korean Ministry of Trade has explicitly announced that it is considering Africa as an alternative source to compensate for any deficit, and even its businesses (such as “Bosco” work to invest in the rights of mines in Tanzania. Will the west efforts to promote the local graphite, the US basis for the build -up of the US Foundation, on the political level. Countries provide critical minerals in the Union countries by 2030.