Weekly Market Recap (January 3) – China to Tighten Export Restrictions on Battery and Critical Metal Technologies
As global trade tensions continue to intensify, China plans to tighten export restrictions on technologies related to the production of battery components and the processing of two critical metals. As the dominant player in the global battery supply chain, controlling nearly 85% of the world’s battery production capacity, this move will further consolidate China’s position in the global battery industry.
According to a public consultation notice released by the Ministry of Commerce on Thursday, China proposes adding battery cathode material preparation technologies to its catalog of technologies subject to export bans or restrictions. Additionally, the ministry plans to enhance controls on technologies and processes related to the extraction of metallic gallium and lithium. This proposal is part of China’s efforts to “strengthen the management of technology imports and exports,” as reported by the official Xinhua News Agency.
Feedback on the proposal will be accepted until February 1, 2025.
In December 2024, during an interview with METALS 100, John Passalacqua, CEO and Director of First Phosphate Corp. (CSE: PHOS, OTC: FRSPF, FSE: KD0), stated that the Bégin-Lamarche project’s Preliminary Economic Assessment (PEA) delivered significant results, including a net present value (NPV) of CAD 2.1 billion and a strong internal rate of return (IRR). Additionally, First Phosphate highlighted its application of advanced phosphoric acid technology and strategic partnerships to strengthen its value chain and competitive position in the rapidly growing Lithium Iron Phosphate (LFP) battery industry.
The director of battery raw materials at Benchmark Mineral Intelligence, a globally recognized battery materials consultancy, noted that the measures, particularly targeting technologies for processing lithium into materials essential for electric vehicle batteries, will help China maintain its dominant position in global lithium processing. Currently, 70% of the world’s lithium batteries are produced in China, granting it a significant lead. The proposed export restrictions, however, will also pose challenges for Western lithium producers who seek to utilize Chinese technologies in processing their lithium products.
In December of last year, China had already issued export bans on materials used for high-tech and military applications, prohibiting exports of strategic metals such as graphite, gallium, and germanium to the United States. However, earlier in 2023, certain materials, including gallium, germanium, antimony, and superhard materials, were already restricted from being exported to the U.S., and stricter controls were placed on the export of graphite.
China is the world’s largest supplier of dozens of critical minerals, which has raised concerns in the United States. In recent years, the battle over technology export controls has escalated between the two countries. This latest proposal to restrict the export of technologies related to batteries and minerals is seen as a reciprocal response to U.S. restrictions on Chinese technology and an important step towards safeguarding China’s economic and technological security.
China News
Electric Cars
Lithium
Phosphate