Beijing is planning to restrict the export of technologies for mining the minerals essential for the global electric vehicle industry

Beijing plans to restrict the export of technologies used to mine essential minerals critical for the development of the global electric vehicle (EV) industry.
China also aims to add battery cathode manufacturing technologies to its list of controlled exports, according to an announcement released in early January by the country’s Ministry of Commerce, seeking public feedback on proposed restrictions related to lithium and gallium production technologies.
If approved, these new restrictions would represent an additional layer of export controls by China on a range of key materials and technologies essential for the production of semiconductors and EV batteries.
A worker transports components to the electric vehicle assembly line at the Leap Motors factory in Jinhua City, Zhejiang Province, Eastern China, on November 26, 2024. (Photo: Larry Leung/Feature China)
About the proposal, Mao Ning, spokesperson for China’s Ministry of Foreign Affairs, stated: "China applies export control measures fairly, reasonably, and without discrimination."
The plan to impose new export restrictions was announced a month after China completely banned the sale of certain critical materials for semiconductor chips and other technologies to the United States, including gallium, germanium, antimony, and various "super-hard" materials.
If implemented, the restrictions could "significantly bolster China’s dominant position in the battery ecosystem, particularly enhancing the EV battery supply chain", said Liz Lee, Research Director at Counterpoint Research, in an interview with CNN. Lee noted, "Depending on the extent of the export controls, it could pose challenges for Western lithium producers aiming to use Chinese technologies for lithium production, a core material for battery cathodes."
China dominates the global market for materials such as gallium, a soft metal commonly used to produce compounds for radio frequency chips in mobile phones and satellite communications, and lithium, widely utilized in batteries for devices ranging from smartphones and laptops to electric vehicles.
Adam Webb, Head of Raw Materials for Batteries at Benchmark Mineral Intelligence, told Reuters that China’s proposal would enable the country to maintain its 70% share of global lithium processing.
“These proposed measures would be a step toward sustaining a large market share and ensuring lithium chemical production for China’s domestic battery supply chain,” Webb explained.
While an iPhone requires only a small amount of lithium, an electric vehicle battery typically needs about 8 kilograms. This is why any new restrictions on lithium extraction technology could be particularly significant as global demand for electric vehicles continues to rise. According to the International Energy Agency, the world is projected to meet only 50% of lithium demand by 2035.
McKinsey forecasts that by 2030, global demand for lithium-ion batteries will surge dramatically, with the required gigawatt-hours increasing from approximately 700 in 2022 to around 4,700.