(Yicai) Oct. 20 -- China, the world’s biggest producer and exporter of graphite, has adjusted its export curbs on the material, a key component in batteries for electric vehicles. 

The decision covers various kinds of graphite, including three types of highly sensitive graphite, that were previously subject only to temporary controls. They have now been officially put on the export control list, as per today’s statement from the General Administration of Customs. 

However, export controls have been eased for five kinds of low-sensitivity graphite items, including furnace carbon electrodes that are mainly used in iron and steel, metallurgy, chemicals and other basic industries. The changes will take effect on Dec. 1.

Shares in related Chinese firms rose on the news. Suzhou-based Der Future Science and Technology Holding Group [SHE: 002631], a manufacturer of graphene products, and Deluxe Family [SHA: 600503], a Shanghai-based property, science and tech investment firm, rose by the 10 percent limit. Shenzhen XFH Technology [SHE: 300890] jumped 8.3 percent, and many other graphite stocks also surged. 

A staffer at Deluxe Family said the company mainly produces thin graphene films and powders, and orders in the downstream market have been slack in recent months. Der Future, which is mainly focused on graphene products, has been making losses recently. 

The GAC’s export curbs are a measure to control the outflow of resources, said Xu Mingming, an analyst at Huafu Securities, but will not greatly affect the domestic graphite sector which is poised to make further progress. The costs in obtaining graphite are relatively low and the technological barriers are also low, Xu noted, adding that the uses of graphene have yet to be fully explored. 

But Li Longshuan, an analyst at LC Securities, said there might be some impact from the export curbs as graphite is widely used in lithium batteries. 

China produces around 800,000 tons of graphite annually, most of which comes from the Inner Mongolia Autonomous Region as well as Hunan and Jilin provinces. 

Editor: Tom Litting