Tesla supplier Syrah expects more graphite buys ahead of China export ban

Australian producer Syrah Resources on Thursday said it expects buyers outside of China to step up their purchases of natural graphite before stricter export controls on the battery material came into effect on December 1.
China, the world’s largest graphite producer and exporter, will require export permits as of Dec. 1 for some graphite products, including spherical graphite used by electric vehicle makers.
Syrah, which has a supply deal with Tesla, mines graphite at its Balama operations in Mozambique and is building a plant in Louisiana where it will produce active anode material (AAM) for batteries. In May, it paused mining at Balama after oversupply hit prices.
The export controls could mean that automakers and suppliers of battery materials will have to accelerate their search for alterative sources of the mineral.
Syrah said that, based on feedback from its customers and analysts, buyers are looking to stockpile graphite to reduce the risk of near-term supply disruptions ahead of the ban, and ahead of China’s winter when it tends to produce less natural graphite.