China Ponders Export Curbs on Lithium Tech, EV Batteries
Commerce officials in China have proposed an export ban on the technology used to process lithium for EV batteries.
They also want to add battery cathode technology to its list of controlled exports and are considering curbs on the technology involved in processing gallium, a [Chinese-language] document issued on Thursday showed.
If implemented, these moves would be the latest in a series of export restrictions and bans targeting critical minerals and the technology used to process them, areas in which Beijing is globally dominant, as well as areas crucial to the making of computer chips.
Their announcement precedes the inauguration later this month of Donald Trump for a second term, during which he is expected to use tariffs and various trade restrictions against China and other countries.
The latest proposal could be a “resource weaponization” strategy to secure a bargaining chip ahead of Trump’s second term, Liz Lee, an associate director at Counterpoint Research, told CNN.
If implemented, a ban or restriction. He was quoted as saying,
Could significantly strengthen [China’s] dominance in the battery ecosystem, especially to boost its supply chain for EV batteries,
“Depending on the level of export controls, it could be problematic for Western lithium producers who want to use Chinese technology to produce lithium, which is one of the core materials for battery cathodes.”
‘Possible risk to production of lithium chemicals’
Adam Webb, head of battery raw materials at consultancy Benchmark Mineral Intelligence, said China’s proposals would help the country retain its 70% grip on the global processing of lithium into the material needed to make electric vehicle (EV) batteries.
He said,
These proposed measures would be a move to maintain this high market share and to secure lithium chemical production for China’s domestic battery supply chains,
“Depending on the level of export restrictions imposed, this could pose challenges for Western lithium producers hoping to use Chinese technology to produce lithium chemicals.”
Threat also to battery firms’ plans?
The proposed expansion and revisions of restrictions on technology used to extract and process lithium or prepare battery components could also hinder the overseas expansion plans of major Chinese battery makers, including CATL, Gotion and EVE Energy.
Some technologies to extract gallium would also be restricted.
Thursday’s announcement does not say when the proposed changes, which are open for public comment until February 1, could come into force.
- Reuters with additional editing by Jim Pollard
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China Ponders Export Curbs on Lithium Tech, EV Batteries, source