BEIJING (Reuters) – China’s Commerce Ministry has proposed export restrictions on some technology used to make battery components and process the crucial minerals lithium and gallium, a document released on Thursday showed.
If implemented, they would be the latest in a series of export restrictions and bans targeting crucial minerals and the technology used to process them, areas in which Beijing has global dominance.
Their announcement comes ahead of 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 other countries, especially China.
Adam Webb, head of battery raw materials at consultancy Benchmark Mineral Intelligence, said China’s proposals would help the country maintain its 70% grip on the global processing of lithium into the material needed to make electric vehicle (EV) batteries.
“These proposed measures would be a step to maintain this high market share and secure the production of lithium chemicals for China’s battery supply chains,” he said.
“Depending on the level of export restrictions imposed, this could pose challenges for Western lithium producers looking to use Chinese technology to produce lithium chemicals.”
The proposed expansion and revision of restrictions on the technology used to extract and process lithium or prepare battery components could also hamper 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 did not say when the proposed changes, which are open for public comment until Feb. 1, could take effect.
