BEIJING (Reuters) -China’s commerce ministry has proposed export restrictions on some technology used to make battery components and process critical minerals lithium and gallium, a document issued on Thursday showed.
If implemented, they would be the latest in a series of export restrictions and bans targeting critical minerals and the technology used to process them, areas in which Beijing is globally dominant.
Their announcement precedes the inauguration later this month of Donald Trump for a second term during which he is expected to use tariffs and various trade restrictions against other countries, in particular China.
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Adam Webb, head of battery raw materials at consultancy Benchmark Mineral Intelligence, said China’s proposals would help the country retain its 70% grip on the global processing of lithium into the material needed to make electric vehicle (EV) batteries.
“These proposed measures would be a move to maintain this high market share and to secure lithium chemical production for China’s domestic battery supply chains,” he said.
“Depending on the level of export restrictions imposed, this could pose challenges for Western lithium producers hoping to use Chinese technology to produce lithium chemicals.”
The proposed expansion and revisions of restrictions on technology used to extract and process lithium or prepare battery components could also hinder the overseas expansion plans of major Chinese battery makers, including CATL, Gotion and EVE Energy.
Some technologies to extract gallium would also be restricted.
Thursday’s announcement does not say when the proposed changes, which are open for public comment until Feb. 1, could come into force.
(Reporting by Beijing Newsroom; additional reporting by Eric Onstad in London; Editing by Toby Chopra and Barbara Lewis)
