China's graphite industry requires the government to strengthen control of graphite mining

According to a report released last week by Industrial Minerals magazine, Chinese graphite producers demanded that the government adopt the same protection measures as graphite for graphite mining. According to the study of Industrial Minerals, China is the world's largest producer of graphite. Last year's graphite production was 1 million tons, accounting for 79% of global demand. "Industrial Minerals" Simon Moores said: "China's monopoly on the supply of natural graphite, coupled with insufficient investment in global mines, has made the supply of graphite very scarce." As a power supply for laptops, smartphones and electric vehicles One of the battery materials (the other is lithium), the producer of graphite, a strategic mineral, recently said that the high interest in graphite has brought about some environmental damage and even smuggling. These producers warned that graphite prices have risen 140% since January last year -- but illegal mining has ensured graphite supply. This means that if control measures are taken, graphite will follow the same price trajectory as the rare earth. Moores said: “China’s measures to limit graphite mining are only subject to VAT and export taxes. However, their past strategic raw materials policy will strictly limit their implementation of such quota schemes for rare earths and their re-use in the domestic economy.” He added: “Once the Chinese government understands the key role that graphite plays in existing and new technologies, this situation may get worse before it improves.” China restricted the export of rare earths in 2010, when the production of rare earths accounted for the world. 96% of demand, prices are also rising rapidly.