China’s commerce ministry has announced plans to impose export restrictions on certain technologies essential for manufacturing battery components and processing critical minerals like lithium and gallium, according to a document released on Thursday.
If enacted, these restrictions would add to a growing list of export controls and bans aimed at critical minerals and related technologies, where China maintains a significant global advantage.
The timing of the announcement coincides with the upcoming inauguration of Donald Trump for a second term, during which he is anticipated to adopt tariffs and other trade measures against various nations, especially China.
Adam Webb, head of battery raw materials at the consultancy Benchmark Mineral Intelligence, indicated that these proposed measures would help China preserve its dominant position, which accounts for 70 percent of the global lithium processing market necessary for electric vehicle (EV) batteries.
“These measures are aimed at maintaining this substantial market share and ensuring the availability of lithium chemical production for domestic battery supply chains in China,” Webb explained.
“Depending on the extent of the export restrictions imposed, this could present challenges for Western lithium producers looking to leverage Chinese technology for the production of lithium chemicals.”
Furthermore, the suggested expansion and revision of restrictions may impact the international growth strategies of prominent Chinese battery manufacturers, such as CATL, Gotion, and EVE Energy.
The announcement also indicates that certain technologies related to gallium extraction would face restrictions.
Details regarding the potential implementation timeline for these proposed changes have not been disclosed; they are currently open for public commentary until February 1.
© Thomson Reuters 2025
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