China’s Ministry of Commerce announced that as of December 1, the export of graphite products will require permits, citing national security concerns. Graphite is a vital anode material in lithium-ion batteries, making it crucial for industries like electric vehicles and energy storage. China is the world’s largest producer of graphite, supplying over 67% of global natural graphite and more than 90% of refined graphite.

This move indicates China’s efforts to control critical mineral supplies, which is part of a broader trend as foreign governments, such as the EU, consider tariffs on Chinese electric vehicles due to perceived unfair subsidies, and the US expands restrictions on Chinese companies acquiring advanced semiconductor technology.

Natural graphite is considered a critical raw material by the EU, Japan, Canada, and the US. China’s major graphite buyers include Japan, the US, India, and South Korea. The International Energy Agency predicts a 20-25 fold increase in graphite demand from 2020 to 2040.

In response to the restrictions, the South Korean Ministry of Trade has held meetings with battery and materials manufacturers to discuss strategies for mitigating potential disruptions in lithium-ion battery production. Japan has expressed its intention to inquire further and consider appropriate measures if China’s actions violate World Trade Organization rules.

Before implementing these graphite export controls, China had imposed restrictions on gallium and germanium, affecting global prices for critical metals, starting on August 1. According to Chinese mainland customs data for September, export restrictions on gallium and germanium continue to impede the supply. In September, the export quantity of rolled germanium was 1 kilogram, while in August, it was zero. For both August and September, the export of rolled gallium was zero.

Read more:

• [News] China’s Export Control Measures and Their Impact on Electric Vehicle Battery Production

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China’s Ministry of Commerce and General Administration of Customs announced on Friday that it is optimizing and adjusting the temporary export control measures for graphite materials, officially incorporating three high-sensitivity graphite items, previously under temporary control, into the dual-use export control list.

According to an announcement on the Ministry of Commerce’s website, China’s export control regulations have been modified to safeguard national security and interests. This move, approved by the State Council of China, aims to optimize and adjust the scope of items as per Announcement No. 50 of 2006, titled “Decision on the Implementation of Temporary Export Control Measures on Graphite-related Products by China’s Ministry of Commerce, National Defense Science and Technology Commission, and General Administration of Customs.” Consequently, export controls are imposed on some items.

Specifically, artificial graphite materials and their products with high purity (purity >99.9%), high strength (flexural strength >30Mpa), and high density (density >1.73g per cubic centimeter), as well as natural flake graphite and its products (including spherical graphite and expanded graphite), will require permits and cannot be exported without permission.

Simultaneously, temporary controls have been removed for five low-sensitivity graphite items mainly used in the national economic base industries, such as steel, metallurgy, and chemicals.

Graphite is used in the production of electric vehicle batteries. According to data from the U.S. Geological Survey, China is the world’s largest producer of graphite, accounting for 67% of the global supply of natural graphite.

A spokesperson for China’s Ministry of Commerce responded to inquiries about the export control policy regarding graphite materials, stating that this policy will officially take effect on December 1st. Prior notifications have been sent to concerned countries and regions.

The spokesperson emphasized that implementing export controls on specific graphite items is a common international practice. As the world’s largest producer and exporter of graphite, China has consistently fulfilled international obligations, including non-proliferation. In line with the need to safeguard national security and interests, China has lawfully imposed export controls on specific graphite items, including temporary measures on some graphite items.

In recent times, based on the Export Control Law, the Chinese government has conducted a comprehensive assessment of temporary control measures for graphite items and has made optimized adjustments to reflect a coordinated development and security control concept. This is advantageous for better adherence to international obligations, ensuring the stability and security of global supply chains, and safeguarding national security and interests. China’s export control adjustments are not targeted at any specific country or region, and items that comply with relevant regulations will be permitted for export.

（Photo credit: BYD）

The world’s largest automaker, Toyota (TM-US), announced on Thursday, the 19th, that its North American division has reached an agreement with Tesla (TSLA-US). Starting in 2025, Toyota’s electric vehicles will adopt Tesla’s North American Charging Standard (NACS).

Prior to Toyota’s announcement, companies like Ford, General Motors, and BMW had already joined the Tesla NACS alliance, providing customers with access to Tesla’s extensive Supercharger network.

In 2025, Toyota will integrate the NACS interface into specific Toyota and Lexus BEVs, including a new three-row electric SUV produced at Toyota’s Kentucky plant.

Vehicle owners can connect to Tesla’s widespread North American charging infrastructure, comprising over 84,000 charging stations, including Level 2 and DC fast chargers, using Toyota and Lexus apps.

Owners or lessees of Toyota and Lexus vehicles using the Combined Charging System (CCS) specification will have the option to purchase NACS charging connectors starting in 2025.

Notably, we have anticipated that by 2026, the global tally of public charging stations will soar to 16 million, marking an impressive threefold increase from 2023 figures. As this unfolds, the global ownership of NEVs—which includes both PHEVs and BEVs—will surge to 96 million.

Infineon, Hyundai, and Kia announced on October 18 that they have signed a multi-year agreement for the supply of SiC (Silicon Carbide) and Si (Silicon) power semiconductor modules and chips.

Under this agreement, Infineon will supply SiC and Si power components to Hyundai and Kia until 2030, and in return, Hyundai and Kia will support Infineon’s production capacity and reserves.

The demand for SiC power devices has surged with the growing popularity of new energy vehicles, and as a prominent industry leader, Infineon has embarked on numerous collaborations this year.

• Infineon and Resonac

In January, Infineon declared a new multi-year supply and cooperation agreement with Resonac Co., Ltd. (formerly Showa Denko K.K.). According to this agreement, Resonac will provide Infineon with SiC materials for producing SiC semiconductor components, including 6-inch and 8-inch wafers. Initially focused on 6-inch wafers, Resonac will later supply 8-inch SiC wafers to support Infineon’s transition to 8-inch wafers. As part of the agreement, Infineon will also provide Resonac with SiC material technology-related intellectual property.

• Infineon and TanKeBlue, SICC

In May, Infineon signed long-term agreements with TanKeBlue and SICC to ensure a more competitive and substantial supply of silicon carbide materials. These two suppliers will primarily provide Infineon with 6-inch silicon carbide substrates and offer 8-inch silicon carbide materials, aiding Infineon in transitioning to 8-inch SiC wafers. The agreements also encompass silicon carbide ingots, as Infineon had previously invested nearly 1 billion RMB in acquiring a laser-based wafer technology enterprise, aiming to enhance the utilization of silicon carbide substrates and device cost competitiveness.

Notably, both TanKeBlue and SICC will account for a double-digit percentage of Infineon’s long-term demand volume.

• Infineon and Foxconn

In the same month, according to the Foxconn’s official website, Infineon and Foxconn have signed a memorandum of cooperation to establish a long-term partnership in the field of electric vehicles. Under this agreement, the two companies will focus on the adoption of silicon carbide technology in high-power applications for electric vehicles, such as traction inverters, on-board chargers, and DC converters. They also plan to jointly establish a system application center in Taiwan to expand their collaboration further.

• Infineon and Schweizer Electronic

Additionally, Infineon is collaborating with Schweizer Electronic to develop an innovative solution aimed at directly embedding Infineon’s 1200V CoolSiC™ chips into PCB boards. This move seeks to significantly enhance the driving range of electric vehicles while reducing the overall system cost.

• Infineon and Infypower

In September, Infineon announced a partnership with Shenzhen Infypower (INFY) to provide the industry-leading 1200V CoolSiC™ MOSFET power semiconductor devices, boosting the efficiency of electric vehicle charging stations.

In line with their goal of capturing a 30% share of the global SiC market by 2030, Infineon revealed plans to invest up to 5 billion euros over the next five years to construct the world’s largest 8-inch SiC power semiconductor facility in Malaysia.

(Photo credit: Infineon)

Foxconn, during its 2023 Foxconn Tech Day, has introduced the MODEL N electric logistics vehicle and the mass-production version of the MODEL B crossover SUV. These offerings cater to different segments of the electric vehicle market, showcasing Foxconn’s versatile electric vehicle solutions. Additionally, they presented several models in the MODEL C lineup.

Foxconn’s Chairman, Young Liu, highlighted the company’s strategic transformation, stating, “Foxconn is turning from a manufacturing service company into a platform solution company. Foxconn’s CDMS (Commissioned Design and Manufacturing Service) service model is total solutions and bespoke solutions in the automotive space.”

MODEL C has successfully passed multiple testing and validation phases. Foxconn announced plans for performance and extended-range versions of MODEL C in the near future, with more robust powertrains, faster 0-100 km/h acceleration, and longer endurance. These options offer brand customers a range of choices. The vehicle is already in use by brand customers in Taiwan, with official sales now underway. Foxconn is set to begin mass production and deliveries starting in November, allowing consumers to hit the road in the first quarter of the coming year.

Liu also disclosed that LUXGEN n7 pre-orders have exceeded 5,000 units. Through CDMS, LUXGEN can focus on marketing and service, while Foxconn concentrates on design and manufacturing. This division of labor allows for faster time-to-cost and time-to-market, a strategy expected to yield more success stories in the future.

Liu emphasized that as with PCs and smartphones, automotive manufacturing is also shifting toward an outsourcing model. As competition intensifies, Foxconn’s role becomes more prominent, and the demand for specialized manufacturing services increases. Foxconn completes 80% of the operations, while customers handle the remaining 20%, thereby creating added value.

When asked about the growing proportion of OEM development in mainland China, Liu explained that CDMS has not yet been opened in China. However, with the increasing competitiveness of the Chinese electric vehicle market, cost-saving trends will likely emerge. When the time is right, Foxconn will establish electric vehicle manufacturing capabilities in China.

Regarding the three electric systems, electric motors, electronic control, and batteries, Liu stated that these systems will undergo local production in regions of relevance, with major research and development efforts carried out in Taiwan. A portion of production will remain in Taiwan, while another portion will be localized. The proportion of these three systems will depend on the electric vehicle production volume in other countries and collaborations with local brand companies. In Taiwan, the plan is to achieve an annual production scale of 50,000 to 100,000 electric vehicles, with the goal of securing a 10% market share.

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(Photo credit: Foxconn’s Stream)