The Biden administration issued new rules to prevent Chinese firms from supplying parts for electric cars set to receive billions of dollars in tax credits

The US transition to electric vehicles is about to hit another speed bump, courtesy of new restrictions from China.

The US government has released guidance that will make it harder for EVs to qualify for the full $7,500 tax credit if their batteries contain Chinese components or minerals.

The global supply of graphite, a critical component of Li-ion battery anodes, could soon represent a major bottleneck for EV production.

“The announcement to place controls on graphite exports is a loud wakeup call and a national security issue for the US and Canada, plain and simple, and we have been preparing for this,” DeMaio said at the time.

Graphite producers outside of China have been having an easier time raising money after China announced controls on the critical battery material that will come into effect Dec. 1, industry participants told S&P Global Commodity Insights.

Across the United States, the roads are changing: Among the internal combustion engines that made Michigan famous are more and more electric vehicles.

China’s commerce ministry has put the world’s battery industry on notice by restricting the export of some graphite materials that are used to make anodes for lithium-ion batteries.