BEIJING: China has placed new restrictions on the export of graphite, a key raw material for the production of electric vehicle (EV) batteries, reported German news agency (dpa).

Under the new regulations, China will require special export licences for three “highly sensitive” grades of the mineral, the Ministry of Commerce and Customs announced in Beijing on Friday.

The authority said the measure was taken on “national security” grounds and that export controls on graphite are a “common international practice”.

For five less sensitive types of graphite, which are used for example in the steel industry, China dropped export controls.

Observers both inside and out of China see Beijing’s move as a countermeasure to US sanctions in the technology sector.

Washington recently tightened exports of microchips for artificial intelligence – a strategically important sector in which China wants to catch up.

In July, Beijing restricted exports of gallium and germanium – two raw materials important for e-cars and microchips.

China is a major global producer of graphite. It is critical in the electromobility sector, where it is used in lithium-ion batteries. The foundry and steel industries also use graphite.-Bernama