China’s Ministry of Commerce has announced a proposal for new export restrictions on technologies used in the production of battery components and the processing of critical minerals, including lithium and gallium. This move is part of a broader strategy to maintain China’s dominance in these key industries.
Key Highlights:
Details of the Proposal:
The proposed restrictions aim to control the export of certain technologies essential for lithium processing and battery component manufacturing.
This initiative follows a series of previous export restrictions and bans targeting critical minerals, reinforcing China’s significant influence in this sector.
Market Impact:
Adam Webb, head of battery raw materials at Benchmark Mineral Intelligence, noted that these measures would help China retain its 70% share of the global lithium processing market.
The restrictions could complicate efforts by Western lithium producers who rely on Chinese technology for lithium chemical production.
Challenges for Chinese Battery Makers:
Major Chinese battery manufacturers like CATL, Gotion, and EVE Energy may face hurdles in their overseas expansion plans due to these proposed restrictions.
The measures could limit access to essential technologies needed for their growth in international markets.
Gallium Extraction Technologies:
In addition to lithium, some technologies related to gallium extraction will also be subject to restrictions, further tightening China’s grip on critical mineral processing.
Next Steps:
The announcement does not specify when these proposed changes might take effect, as they are currently open for public comment until February 1.