China is tightening restrictions on lithium battery technology and the export of key minerals such as lithium and gallium. This measure not only consolidates China's leading position in the global new energy field, but also may reshape the international supply chain pattern and exacerbate trade tensions between China and the United States. What profound impact will the new regulations have on global technological innovation and industrial development? Click to learn more and explore the strategic layout and potential challenges behind it!

The Chinese government recently announced plans to expand the scope of the export control technology list. According to the notice issued by the Ministry of Commerce on January 2, it is proposed to add multiple technologies, including lithium battery production related technologies and lithium and gallium refining technologies, to the scope of export control. At present, the Ministry of Commerce is soliciting opinions from stakeholders and the public, and the deadline for soliciting opinions is February 1st. If these export restrictions are officially implemented, it may delay the development of other countries in the field of lithium battery manufacturing technology, as China has a significant advantage in this area. Analysts believe that this move aims to protect China's technological leadership and strengthen competitiveness by keeping core technologies secret. In December 2023, China implemented similar restrictions on technologies related to rare earth element mining and refining. China is also a global leader in the field of rare earths and is the world's largest supplier of rare earths. According to the latest document, the "Catalogue of Technologies Prohibited and Restricted from Export in China" proposes adjustments to some technologies that are prohibited and restricted from export

In the field of chemical raw material and chemical product manufacturing, a series of control points related to the preparation technology of battery positive electrode materials have been added, such as: a、 Preparation technology of lithium iron phosphate: It is required to meet indicators such as a compaction density of ≥ 2.58g/cc at 300MPa and a first coulombic efficiency of ≥ 97%.

b、 Preparation technology of lithium manganese iron phosphate: including requirements such as initial coulombic efficiency ≥ 90%, average voltage ≥ 3.85V, 2C discharge capacity retention rate ≥ 95%.

c、 Preparation technology of phosphate positive electrode raw materials: involving high standard preparation processes for key materials such as iron phosphate and ferrous oxalate.

2. In the field of non-ferrous metal smelting and rolling processing, detailed technical requirements for the extraction and processing of metals such as lithium and gallium have been added:

a、 The technology of extracting gallium metal from alumina mother liquor emphasizes purification through ion exchange and resin method.

b、 Lithium extraction technology from spodumene covers the process of producing lithium carbonate and lithium hydroxide from lithium containing purified liquids, including carbonization pyrolysis purification, continuous production automatic control, and other technologies.

c、 Preparation techniques for metallic lithium and its alloys, such as multi anode electrolysis and distillation purification processes.

d、 Direct lithium extraction technology from brine, focusing on adsorbent material synthesis and membrane separation technology.

This move is seen as a further escalation of the US China trade war

The latest restriction plan is seen as the latest escalation in the US China trade war. In early December 2024, the Chinese Ministry of Commerce implemented a wide-ranging ban on key materials such as gallium, germanium, and antimony exported to the United States, further exacerbating tensions between the two countries. In response, the United States has imposed new tariffs on Chinese made solar silicon wafers and polycrystalline silicon, which are important raw materials for solar cell production.

Western media and government reactions

China's latest measures have attracted widespread attention from Western media and governments. The New York Times pointed out that this marks the first time China has adopted new regulatory measures and expanded their scope to civilian and military products. The Center for Strategic and International Studies (CSIS), a US think tank, stated that this measure is a direct response to the US restrictions on China's access to advanced technology, highlighting Beijing's readiness to upgrade its response in the face of the upcoming US administration.

The White House spokesperson stated that they are evaluating China's latest restrictions and will take necessary steps to respond. He emphasized that these new regulatory measures highlight the importance of strengthening cooperation with other countries to reduce the dependence of critical supply chains on China.

In addition, Reuters reported that China's control over strategic minerals is starting to hit pain points for Western companies. Due to China being a major supplier of key minerals such as gallium, germanium, and antimony, China's export control measures have led to a surge in the prices of these minerals in the international market. Many Western companies are experiencing supply shortages and have to seek alternative sources of supply.

The further adjustment of China's export technology control not only involves the complexity of the technology itself, but also reflects the delicate balance of global competition in key materials. Whether these measures will have a broader international impact remains to be seen.