China proposes to cut exports of battery cathode and lithium processing technologies

China’s Ministry of Commerce has proposed export restrictions on some technology used to make lithium iron phosphate (LFP) and lithium manganese iron phosphate (LMFP) cathode materials and process critical minerals, such as lithium.

A document issued on January 2 titled “Notice on Adjustments to the Public Consultation for the Catalogue of Technologies Prohibited or Restricted from Exporting from China” comes as the latest in a series of strategic power moves with U.S. President-elect Donald Trump previously proposing tariffs of over 60% on all Chinese exports. The deadline for feedback submission to the notice is February 1, 2025.

Specifically, the documents proposes export restrictions on on LFP and LMFP battery cathode material preparation technologies and phosphate-based cathode precursor preparation technology.

In the Non-Ferrous Metal Smelting and Rolling Industry section, it suggests restrictions in the domains of the extraction of gallium, spodumene-based lithium extraction for lithium carbonate and lithium hydroxide production, metallic lithium and lithium alloy preparation technology, direct lithium extraction from brines, and preparation of purified lithium solutions.

According to Benchmark’s Lithium Forecast, China accounted for 68% of lithium chemical production in 2024. The country also accounted for 99% of lithium iron phosphate (LFP) cathode active material production, according to Benchmark’s Cathode Forecast.

“These proposed measures would be a move to maintain this high market share and to secure lithium chemical production for China’s domestic battery supply chains,” Adam Webb, head of battery raw materials at consultancy Benchmark Mineral Intelligence, said.

However, industry insiders suggest that such restrictions could backfire on Chinese battery manufacturers with overseas expansion plans, such as CATL, BYD and Gotion.