China has imposed new export restrictions on key technologies used in electric vehicle (EV) battery production and lithium processing, tightening control over a critical sector where it already dominates.
The move is seen as an effort to maintain its lead in the global EV race and protect strategic supply chains.
Technologies added to the export control list now require government licenses for any overseas transfer through trade, investment, or cooperation, according to China’s Commerce Ministry. These include methods for producing lithium iron phosphate (LFP) batteries and processing lithium, a core element in EV manufacturing.
The new rules follow earlier curbs on rare earth exports and mirror Beijing’s broader strategy in its ongoing trade tensions with the US and other Western countries.
China controls about 94% of LFP battery production and 70% of processed lithium output globally. Its battery makers like CATL, BYD, and Gotion supply automakers worldwide. CATL, for example, has partnerships with Tesla and Ford and plants in Europe and the US.
While the full impact of the new restrictions remains unclear, analysts say they mostly target upstream processing, not battery cell or module assembly. This means immediate disruption to overseas operations may be limited.
The move, however, could accelerate Western efforts to localize battery materials supply and reduce reliance on China.