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China has outlined plans to restrict exports of key technologies used in lithium refining and electric battery chemical production.
The proposal by China’s Ministry of Commerce, currently open for public feedback and open to change, includes specific technologies, such as:
- direct lithium extraction (DLE), an emerging technology over which China has a considerable lead
- technologies associated with making lithium-iron-phosphate (LFP) cathodes and other battery chemicals, critical to the performance of EV batteries
The export restrictions are part of China’s broader strategy to protect its innovations in battery production, safeguard its dominance over the entire supply chain, as well as retaliation for similar restrictions by the US on semiconductor technology.
In December, 2024, China banned the export of gallium, germanium and antimony.
This new wave of controls will further complicate the efforts of US and European companies to secure reliable and affordable access to critical minerals, such as lithium, a metal at the heart of the transition to clean energy and electric vehicles.
Our recent analysis on the concentration of refining in China:
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