# China controls 99% of battery spherical graphite, OECD says

*Processing bottlenecks leave electric vehicle cell makers exposed to Chinese export licensing as US subsidy rules against foreign entities of concern take effect on Jan. 1, 2027.*

**Published:** October 29, 2026  
**By:** Mina Okoro  
**Section:** Analysis & Comparison — Cross-border  
**Format:** Asia Compare  
**Confidence:** high  
**Source:** https://eastasiabrief.com/analysis/china-controls-99-battery-spherical-graphite-oecd-says-988  
**Publisher:** East Asia Brief (https://eastasiabrief.com/)

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## What to know

- China controls 99% of spherical graphite refining and 92% of magnet rare earths, OECD reports
- POSCO Future M invests 396.1 billion won ($285 million) for a 37,000-ton plant in Saemangeum
- US IRA transition grace period for Chinese graphite expires Dec. 31, 2026

![A worker operates a control panel beside a large vat filled with dark slurry inside a graphite processing plant. (AI-generated image)](https://eastasiabrief.com/media/2026-10-28-fd4329515b38.webp)
*A worker operates a control panel beside a large vat filled with dark slurry inside a graphite processing plant. (AI-generated image)*

The Organisation for Economic Co-operation and Development reported on Oct. 28, 2026, that China controls roughly 99% of the world's processing capacity for battery-grade spherical graphite.

The Paris-based organization, which tracks industrial policy across advanced market economies, stressed that intermediate refining bottlenecks present a far sharper supply disruption risk than raw mineral extraction.

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Cite as: East Asia Brief, "China controls 99% of battery spherical graphite, OECD says," October 29, 2026. https://eastasiabrief.com/analysis/china-controls-99-battery-spherical-graphite-oecd-says-988