China's Strategic Move: New Export Limits on EV-Tech Minerals

China plans to impose export restrictions on key technologies for electric vehicles, escalating its tech rivalry with the US. This strategic move aims to solidify China's control over critical minerals and the EV supply chain, amid increasing global demand for lithium-based products.

China is set to introduce new export restrictions on technologies essential for extracting minerals critical to the global electric vehicle (EV) industry, CNN reported. The proposed policy targets technologies linked to lithium, gallium, and battery cathode production, vital for EV batteries and semiconductor manufacturing.

The announcement by China's Commerce Ministry, inviting public feedback, is viewed as an extension of China's strategy to control materials crucial for high-tech manufacturing. The move follows China's recent prohibition of key material sales, like gallium, germanium, and antimony, to the United States, retaliating against US semiconductor export restrictions. Mao Ning, China's Foreign Ministry spokesperson, emphasized China's commitment to fair export control measures.

Lithium extraction technology restrictions could significantly impact the EV market, where lithium demand is surging. According to Liz Lee, Counterpoint Research's associate director, this could bolster China's dominance in the battery supply chain, challenging Western producers. China processes over 70% of the global lithium supply, and the measures aim to protect and enhance its market position, explained Adam Webb of Benchmark Mineral Intelligence.

The timing of this proposal is seen as strategic, just before the Trump administration's inauguration, aiming to leverage the ongoing trade conflict. With global demand for EVs and lithium-ion batteries poised to rise, China's influence could deepen, complicating plans for Chinese firms like BYD and CATL. China's actions, including adding 28 US companies like Lockheed Martin and Raytheon to an export control list, highlight rising geopolitical tensions in tech material trade, CNN reported.

As China leverages its strategic position in the global supply chain, Western responses could shape the future landscape of EV technology and related industries amid the US-China trade war. (ANI)

(With inputs from agencies.)