China tightens export controls on key technologies for e-mobility

The techno-economic competition between Beijing and Washington is reaching a new dimension: China plans to tighten export controls on technologies for extracting minerals critical to global electromobility. This move coincides with the upcoming inauguration of U.S. President Donald Trump and could further fuel the conflict between the two countries. Particular focus is on anode technology for batteries, which is set to be added to the list of controlled exports. This measure follows earlier restrictions affecting technologies for the production of lithium and gallium. If this proposal is approved, new export controls on a variety of critical materials and associated technologies could ensue. These are central to the manufacturing of semiconductors and batteries for electric vehicles. At a press conference, Mao Ning, spokesperson for the Foreign Ministry, emphasized that China enforces these measures fairly and non-discriminatorily. The announcement comes in the context of a recently imposed ban on the sale of materials vital for semiconductors to the U.S. This was in reaction to export controls by the outgoing Biden administration. Liz Lee of Counterpoint Research sees in the proposal a possible strategy for increased control of the battery market. If implemented, China would further expand its dominance in battery technology, while Western lithium producers relying on Chinese technology could face significant challenges. China maintains its leading position in processing key raw materials such as gallium and lithium, which are essential for numerous technologies. Adam Webb of Benchmark Mineral Intelligence points out that the new measures are intended to further secure China's 70% control of the global lithium market. This aims to strengthen its supply chain in battery-related production and prioritize the domestic market.