China Tightens Grip on Critical Minerals and Battery Technology
Beijing’s Latest Move to Dominate Global Market
In a bold move, China’s commerce ministry has unveiled plans to restrict exports of key technologies used in producing battery components and processing critical minerals like lithium and gallium. This proposal, announced on Thursday, would further solidify China’s position as the global leader in these areas.
Retaining Market Share
The proposed restrictions would help China maintain its 70% dominance in the global processing of lithium, a crucial material for electric vehicle (EV) batteries. According to Adam Webb, head of battery raw materials at Benchmark Mineral Intelligence, “These measures would ensure China’s domestic battery supply chains have a steady supply of lithium chemicals.” This could pose significant challenges for Western lithium producers relying on Chinese technology to produce lithium chemicals.
Impact on Global Battery Makers
The expanded restrictions on technology used to extract and process lithium, as well as prepare battery components, may also hinder the overseas expansion plans of major Chinese battery manufacturers, such as CATL, Gotion, and EVE Energy. Furthermore, some technologies used to extract gallium would also be restricted, limiting access to this critical mineral.
Next Steps
The proposed changes are open for public comment until February 1, but the timeline for implementation remains unclear. As the world waits with bated breath, one thing is certain – China is determined to maintain its stranglehold on the global battery technology and critical minerals market.
A New Era of Trade Restrictions
This move comes ahead of Donald Trump’s second term inauguration, during which he is expected to impose tariffs and trade restrictions on other countries, particularly China. As the trade landscape continues to shift, one thing is clear – China is prepared to take bold action to protect its interests.
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