BUSINESS

China Tightens Export Rules to Protect Its Lead in Lithium Battery Tech

Published: Jul. 16, 2025 4:35 a.m. GMT+8

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Workers manufacture lithium batteries for export in Yongzhou, Hunan province,

China introduced new restrictions on Monday covering the export of core technologies used in lithium battery production — a strategic move to safeguard its dominance in the global electric vehicle (EV) supply chain.

The Ministry of Commerce and the Ministry of Science and Technology updated China’s official export control list, adding advanced processes critical to the development of next-generation battery materials and lithium extraction.

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China imposed new export restrictions on core technologies for lithium battery production, especially advanced LFP and LMFP cathode manufacturing and lithium extraction methods.
The measures target technology exports, not finished batteries or equipment; firms must now apply for licenses, with the new rules affecting next-generation, high-performance battery tech.
LFP batteries powered nearly 75% of new EVs in China in 2024, reflecting China’s global dominance in affordable lithium battery technologies and refining.

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Who’s Who

Contemporary Amperex Technology Co. Ltd.: Contemporary Amperex Technology Co. Ltd. (CATL) is a Chinese company that has become a leader in LFP battery technology. Alongside BYD, CATL refined LFP batteries into a cost-effective and safe standard. This early focus contributed to China's dominance in the EV battery sector.

BYD Co. Ltd.: BYD Co. Ltd. is a Chinese company that has refined lithium-iron-phosphate (LFP) batteries into a cost-effective and safe standard. This early focus on LFP chemistry has contributed to China's dominance in the electric vehicle (EV) battery sector. LFP batteries, including those made by BYD, now power nearly 75% of new EVs in China in 2024.

Gaogong Lithium Battery: Gaogong Lithium Battery is a research firm that believes China's new export restrictions protect Chinese battery makers from intellectual property leakage. They suggest this move helps sustain a technological lead over international rivals and supports long-term profitability through innovation.

LG Energy Solution: LG Energy Solution is a South Korean company that has recently begun large-scale production of LFP batteries in the U.S. This move highlights global rivals' efforts to catch up to China's advancements in LFP technology.

AI generated, for reference only