China Strengthens Lithium Control With New Tech-Export Restrictions
China is tightening tech-export rules to safeguard its lithium supply chain amid rising global trade tensions
China, Lithium, Battery Technology, Exports, Trade Tensions
Beijing: China is stepping up its game with new plans to control tech exports related to lithium. They want to keep a tight grip on this vital supply chain, especially with all the trade tensions heating up globally.
According to a recent notice from the Ministry of Commerce, the government is looking to add certain technologies used in lithium refining to its export control list. This move is all about protecting the innovations that have helped China become a leader in battery and electric vehicle production.
Analysts are saying this shows that the government knows how crucial it is to keep these advanced lithium technologies under wraps. Yu Yakun from Cofco Futures mentioned that overseas investments using these technologies will face stricter checks.
The proposed restrictions target various processes for making battery-grade lithium chemicals, including a new method called direct lithium extraction, where China has a lot of expertise. It also includes specific chemical compounds essential for battery performance.
While these plans are still open for public feedback and could change, battery companies in China and Asia are already feeling the pressure to figure out what this means for their future investments, especially with foreign partners.
Some analysts believe that current projects won’t be affected, but future investments might take a hit. The new rules would cover technologies for making different types of lithium cathodes, which are super important for batteries.
Last month, China also banned exports of several high-tech materials in response to the U.S. tightening its tech controls. This back-and-forth is raising eyebrows, especially since China is a major supplier of critical minerals.
Materials like gallium and germanium are now off-limits for export to the U.S., and graphite sales are under tighter scrutiny. The latest measures are part of China’s efforts to manage technology imports and exports more effectively.
Public feedback on these proposals is open until February 1, so it’ll be interesting to see how this all plays out.