Subaru, the Japanese automaker, is actively collaborating with its suppliers to mitigate risks associated with procuring materials essential for electric vehicle (EV) batteries, as per the statement by its chief executive on Wednesday. The move comes in response to China’s decision to impose export permits for certain graphite products starting on December 1, 2023, a regulation that may encourage automakers to explore alternative materials and sources.
China is the world’s leading producer and exporter of graphite, a critical component in EV batteries. The requirement for export permits has raised concerns in the automotive industry, leading to a need for diversifying sourcing strategies and addressing potential disruptions.
Subaru’s CEO, Atsushi Osaki, emphasized the necessity of considering risk mitigation for various materials, not limited to graphite. He also stated that Subaru is actively collaborating with its suppliers to devise measures to address these potential risks.
The move by China could have broader implications for global trade, prompting automakers to reduce their reliance on the country as a key resource provider.
