China’s commerce ministry has proposed export restrictions on some expertise used to make battery parts and course of important minerals lithium and gallium, a doc issued on Thursday confirmed.
If carried out, they’d be the most recent in a collection of export restrictions and bans focusing on important minerals and the expertise used to course of them, areas through which Beijing is globally dominant.
Their announcement precedes the inauguration later this month of Donald Trump for a second time period throughout which he’s anticipated to make use of tariffs and numerous commerce restrictions towards different nations, specifically China.
Adam Webb, head of battery uncooked supplies at consultancy Benchmark Mineral Intelligence, stated China’s proposals would assist the nation retain its 70 % grip on the worldwide processing of lithium into the fabric wanted to make electrical car (EV) batteries.
“These proposed measures could be a transfer to take care of this excessive market share and to safe lithium chemical manufacturing for China’s home battery provide chains,” he stated.
“Relying on the extent of export restrictions imposed, this might pose challenges for Western lithium producers hoping to make use of Chinese language expertise to supply lithium chemical substances.”
The proposed enlargement and revisions of restrictions on expertise used to extract and course of lithium or put together battery parts might additionally hinder the abroad enlargement plans of main Chinese language battery makers, together with CATL, Gotion and EVE Vitality.
Some applied sciences to extract gallium would even be restricted.
Thursday’s announcement doesn’t say when the proposed adjustments, that are open for public remark till February 1, might come into power.
© Thomson Reuters 2025
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