At the start of October, the global materials sector faced a new disruption as China imposed export controls on synthetic graphite anode materials, a core component used in lithium-ion batteries and high-performance refractories.

The new rules, effective October 1, 2025, require special export licenses for a wide range of processed graphite products, immediately tightening supply for international buyers.

Industry Impact

The move has caused concern among battery manufacturers, steel producers, and refractory companies outside China, many of whom rely heavily on Chinese graphite for both conductive and thermal applications. Procurement delays and rising costs are already being reported in Asia and Europe.

European Response

In response, European industrial groups are accelerating efforts to diversify sourcing, exploring partnerships and deposits in Africa, North America, and Scandinavia. Analysts note that the Chinese export regime underscores the strategic importance of graphite, now often described as the “new lithium” of the energy transition.

Outlook

Experts expect volatility in graphite prices and longer lead times for anode-grade and refractory-grade material until new processing capacity comes online outside China — a development that could reshape global trade flows in advanced carbon materials over the coming years.