China’s Ministry of Commerce has proposed export restrictions on some technology used to make battery components and process key minerals lithium and gallium, according to a document released Thursday.
If implemented, they would be the latest in a series of export restrictions and would restrict key minerals and the technology used to process them, areas in which Beijing dominates globally.
His announcement comes ahead of Donald Trump’s inauguration for a second term later this month, during which he is expected to use tariffs and various trade sanctions against other countries, particularly China.
Adam Webb, head of battery raw materials at consultancy Benchmark Mineral Intelligence, said China’s proposals would help the country retain a 70 percent grip on global processing of lithium into the material needed to make electric vehicle (EV) batteries. will
“These proposed measures will be a move to maintain this high market share and secure lithium chemical production for China’s domestic battery supply chains,” he said.
“Depending on the level of export restrictions, this could pose challenges for Western lithium producers hoping to use Chinese technology to produce lithium chemicals.”
The proposed extension and revision of restrictions on technology used to extract and process lithium or manufacture battery components could also hamper overseas expansion plans of major Chinese battery makers, including CATL, Gotion and EVE. energy
Certain gallium extraction technologies will also be banned.
Thursday’s announcement did not say when the proposed changes, which are open for public comment until Feb. 1, might go into effect.
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