By Sama Marwan,
China has proposed new export restrictions on technologies essential for producing electric vehicle (EV) batteries and processing critical minerals like lithium and gallium. Announced by the Ministry of Commerce on January 2, 2025, these measures aim to strengthen China’s dominant position in global lithium processing, a key component in EV battery production.
The proposed restrictions could significantly impact Western lithium producers that depend on Chinese technology, as well as the international expansion plans of major Chinese battery manufacturers such as CATL, Gotion, and EVE Energy. This development comes ahead of the anticipated term of U.S. President Donald Trump, who is expected to implement tariffs and trade restrictions, particularly targeting China.
The proposal is currently open for public comment until February 1, 2025, with no specified date for implementation. Analysts caution that while these measures may bolster China’s control over critical mineral processing, aggressive use of such tools could backfire by accelerating Western efforts to reduce economic dependency on China, potentially weakening its own economy.
This move is part of a broader strategy by China to maintain its competitive edge in the EV sector amid growing global trade tensions and efforts by other countries to develop their own critical mineral processing capabilities.
