China proposes export restrictions on vital battery and mineral technologies amidst global trade tensions

The proposal is seen as a strategic effort to safeguard China’s domestic battery supply chains.

China Flag on the table

China’s Ministry of Commerce has proposed new export restrictions on key technologies for producing lithium and gallium, vital components in electric vehicle (EV) batteries and other advanced applications. These measures, announced Thursday, aim to bolster China’s dominant position in processing critical minerals, where it controls 70% of global lithium refining capacity. The proposed rules are open for public comment until 1 February, but no implementation date has been specified.

Industry experts warn the restrictions could disrupt global supply chains. Adam Webb of Benchmark Mineral Intelligence noted that Western lithium producers might struggle to access Chinese technology critical for refining lithium chemicals, potentially delaying production and innovation. Meanwhile, the rules could also complicate the global ambitions of Chinese battery giants like CATL and Gotion by restricting their overseas operations.

The proposed curbs come amid ongoing trade tensions, with Beijing responding to mounting international scrutiny over its control of crucial materials. The measures may deepen competition between China and other nations striving for energy independence and a sustainable transition to EVs if enacted.