China has announced that it will require export permits for certain graphite goods to protect national security.

The move comes as foreign governments confront Chinese enterprises over their industrial practices.

China produces and exports the most graphite, which is used in most electric vehicle battery anodes.

The EU is considering taxes on Chinese-made EVs, claiming they receive unfair subsidies.

The US government has restricted Chinese semiconductor sales, including Nvidia’s powerful AI chips.

China’s commerce ministry stated that the action was “conducive to ensuring the security and stability of the global supply chain and industrial chain, and conducive to better safeguarding national security and interests.”

Automakers are scrambling to secure supply from outside China as electric vehicle sales rise.