China's Trade Ministry Proposes Export Restrictions on Technologies Used for Processing Lithium and Gallium

The Chinese Ministry of Commerce has proposed export restrictions on certain technologies used in the production of battery components and the processing of critical minerals such as lithium and gallium. If implemented, these would be the latest in a series of export restrictions and bans targeting critical minerals and the technologies used to process them, in which Beijing has global dominance.

The proposed changes will expand and revise restrictions to include some technologies used in the production of cathodes, which are components of batteries, as well as methods for lithium extraction and processing. Certain technologies for gallium extraction will also be restricted under the proposed changes, which are open for public comment until February 1. The announcement does not specify when these changes will take effect.

Depending on their severity, the proposed restrictions on technology used to process lithium or prepare battery components could hinder the overseas expansion plans of major Chinese battery manufacturers such as CATL, Gotion, and EVE Energy.