July 16, 2025 | Beijing, China – China has officially added battery cathode material production technologies to its catalogue of restricted exports, according to statements from the Ministry of Commerce and the Ministry of Science and Technology. The move comes into effect immediately, requiring Chinese firms to obtain government licenses before exporting advanced technologies related to lithium iron phosphate (LFP), lithium manganese iron phosphate (LMFP), and precursor materials used in electric vehicle (EV) batteries.
The new controls also target techniques in non‑ferrous metallurgy, including spodumene‑based lithium carbonate and hydroxide production, lithium metal and alloy processing, brine‑based lithium extraction, and purification liquid preparation—broadening the scope of regulated technologies.
A Ministry of Commerce spokesperson explained the rationale: “Battery cathode material preparation technology is increasingly being used in sensitive fields… including relevant technologies in the restricted category … helps better coordinate development and safety”. Xinhua News Agency further noted that this update reflects China’s dual goals of safeguarding national economic security while fostering safe and sustainable technological cooperation.
China has rapidly solidified its position as a global leader in EV battery technology. It controls roughly 65% of global lithium processing capacity and commands approximately 70% of the EV battery market, anchored by major battery manufacturers such as CATL and BYD. By restricting access to cathode‑tech know‑how, Beijing aims to preserve its domestic advantage and prevent rival nations from “catching up too easily”.
Industry experts suggest these restrictions may complicate overseas production efforts by Chinese firms, as well as global joint ventures involving advanced cathode chemistry. While projects currently using basic LFP technology might proceed, future endeavors leveraging more advanced formulations may require careful navigation through licensing and compliance channels.
This regulation follows a series of Chinese controls on strategic minerals and related technologies since 2023—covering rare-earth processing, gallium, germanium, graphite, and now lithium and cathode technologies. These coordinated actions underscore China’s growing use of export policy as a tool for industrial strategy, particularly in sectors tied to clean energy, semiconductors, and defence.
Global battery and auto manufacturers are already facing tightened supply chains. Any delays in licensing or alterations in export policy may impact overseas battery plants and complicate supply strategies for Western automakers. Analysts warn that as China sustains its competitive edge through export controls, international partners may be forced to accelerate development of domestic battery‑technology frameworks or seek alternative suppliers outside China.