China Strengthens Dominance On Critical Minerals Technology

China is one of the most advanced nations in terms of technology

China’s Ministry of Commerce has proposed new export restrictions on technologies essential for processing critical minerals such as lithium and gallium. These measures are aimed at safeguarding China’s dominant position in the global supply chain of battery materials amid intensifying global trade tensions.

The proposal, open for public feedback until February 1, targets specific technologies used in manufacturing battery components and refining critical minerals. These minerals are key to producing electric vehicle (EV) batteries and advanced technologies. China currently controls 70% of global lithium processing capacity, a position it appears determined to maintain.

Adam Webb, head of battery raw materials at consultancy Benchmark Mineral Intelligence, stated that the proposed measures could help China secure its lithium chemical production for domestic supply chains. “These measures would ensure China’s dominance in EV battery materials while safeguarding innovations critical to the country’s technological edge,” he said.

What This Means for Global Trade and EV Batteries

The timing of this announcement is significant, as it coincides with rising competition between China and the United States in sectors such as critical minerals and semiconductors. It also comes ahead of Donald Trump’s inauguration for a second presidential term, during which he is expected to implement tariffs and trade restrictions targeting China.

The proposed restrictions align with a broader strategy to consolidate control over critical supply chains, especially as Western countries seek to diversify away from reliance on Chinese resources. If enacted, the controls could further complicate efforts by Western producers to adopt Chinese technology for mineral processing.

Protecting Innovations Amid Rising Trade Tensions

This move is expected to have far-reaching implications for global supply chains. Western economies heavily depend on China’s expertise and capacity in refining lithium and other critical minerals. Tougher export controls may accelerate efforts by other nations to develop alternative sources and processing capabilities, but such transitions are neither quick nor straightforward.

Additionally, major Chinese companies like CATL and Gotion, leaders in battery manufacturing, may face hurdles in their international expansion due to limited technology exports.

China’s plan also underscores the need to protect its technological advancements in lithium refining and battery chemicals production. The government is keen on securing innovations that underpin its dominance in EV and battery production.

In the face of escalating global trade tensions, China’s proposal highlights the strategic importance of critical minerals. These resources are pivotal to the global economy, and the outcome of this proposal could shape the future of industries reliant on them.