Japanese Company Says No Impact from China's Graphite Export Controls

Yasutoshi Nishimura, Japanese Minister of Economy, Trade and Industry (right in photo). [Image source=AFP Yonhap News]

Japanese companies are pushing for supply chain diversification despite saying "there is no immediate impact" following the Chinese government's start of export controls on graphite, a key raw material for electric vehicle batteries, reported Mainichi Shimbun and others on the 2nd.

GS Yuasa, which supplies electric vehicle batteries to Japanese automakers such as Toyota Motor, Honda, and Mitsubishi Motors, stated that there will be no immediate impact from China's graphite export controls. However, the company faces the challenge of securing a stable supply of graphite in case the export controls become stricter or prolonged.

A GS Yuasa representative said, "It is difficult for battery manufacturers to respond alone," adding, "We will continue efforts including diversifying import sources in cooperation with automakers and the government."

Nissan Motor also uses Chinese graphite in its electric vehicle batteries but said the export controls have not affected production. However, Nissan reportedly requested its suppliers to increase graphite stockpiles and secure import sources outside China.

Mitsubishi Chemical, which produces lithium-ion battery materials, is reportedly considering cooperation with an Australian company that processes graphite in Mozambique, Africa, according to Yomiuri Shimbun.

At a press conference the previous day, Economy, Trade and Industry Minister Nishimura Yasutoshi said regarding China's graphite export controls, "If there are unfair measures in light of international norms, we intend to respond appropriately," and added, "We are conducting a detailed investigation of the impact."

The Chinese government began full-scale enforcement of export controls on graphite used in the production of anode materials, a key component of electric vehicle batteries, from the 1st. Graphite is utilized in various industries including semiconductors, batteries, nuclear power, energy, aerospace, bio-pharmaceuticals, new materials, and advanced equipment. Japan has relied on Chinese graphite for about 90% of its imports.