China Proposes Export Restrictions on Key Battery and Mineral Technologies

China's Manufacturing Hits Six-Month Low in August, Pressuring Policymakers for More Consumer-Focused Stimulus

Key Points

  • China plans to expand export restrictions on technologies for processing lithium and gallium.
  • The measures could disrupt the overseas expansion plans of Chinese battery makers like CATL.
  • The restrictions are part of a broader strategy to maintain dominance in critical mineral sectors.
  • The announcement comes as U.S.-China trade tensions loom under the incoming Trump administration.

China’s Ministry of Commerce has proposed new export restrictions on technologies critical to producing battery components and processing essential minerals, such as lithium and gallium. The document, released on Thursday, outlines potential measures to extend Beijing’s dominance in these strategic sectors. Public consultation on the proposals will remain open until February 1, though no timeline for their implementation has been disclosed.

The proposed rules aim to expand restrictions to include certain technologies used in manufacturing cathodes, a vital component of batteries, and techniques for extracting and processing lithium. Under the draft regulations, gallium, another critical mineral used in high-tech applications, would also face technology export limitations.

If enacted, the restrictions could significantly impact the global supply chain for batteries and critical minerals, areas where China holds a commanding position. Moreover, they may disrupt the international growth strategies of major Chinese battery manufacturers like CATL, Gotion, and EVE Energy. These companies rely on advanced technologies and resources to support their overseas operations, which could face new hurdles under the proposed measures.

This move is the latest in a series of export control actions by China targeting critical minerals and their associated technologies. It reflects an ongoing effort to safeguard its technological and resource advantages. By potentially limiting the global availability of these technologies, Beijing could exert further influence over industries reliant on them, including electric vehicles and renewable energy storage.

These proposed restrictions coincide with the political transition in the United States, where Donald Trump is set to assume the presidency later this month. Trump has pledged to use tariffs and trade restrictions to counter China’s economic influence, raising the possibility of escalating trade tensions between the two nations.

EDITORIAL TEAM
EDITORIAL TEAM
TechGolly editorial team led by Al Mahmud Al Mamun. He worked as an Editor-in-Chief at a world-leading professional research Magazine. Rasel Hossain and Enamul Kabir are supporting as Managing Editor. Our team is intercorporate with technologists, researchers, and technology writers. We have substantial knowledge and background in Information Technology (IT), Artificial Intelligence (AI), and Embedded Technology.

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