China just blocked a core lithium tech: Here’s what it means for your next electric vehicle
Exporters must now obtain government approval before transferring these technologies abroad. The ministry cited increasing use in “sensitive fields” and stated that the classification adjustment reflects recent technological developments.
- Jul 16, 2025,
- Updated Jul 16, 2025 8:29 AM IST
China has enacted strict new export controls on key battery technologies, reshaping the global supply landscape for electric vehicles and clean energy—and triggering policy and supply chain implications for both the United States and India.
Effective July 15, China’s Ministry of Commerce officially restricted the export of technologies critical to lithium battery production.
The controls apply to processes used in manufacturing lithium iron phosphate (LFP) and lithium manganese iron phosphate (LMFP) battery cathodes, as well as advanced methods for lithium extraction and refining from brine and spodumene.
Exporters must now obtain government approval before transferring these technologies abroad. The ministry cited increasing use in “sensitive fields” and stated that the classification adjustment reflects recent technological developments.
While not a blanket ban, the new licence regime adds a layer of complexity to international collaboration and sourcing.
For the United States, the impact centers on supply chain continuity and technological access. U.S. automakers and energy storage firms, many of which rely on components and processes refined in China, may face input cost pressures and production delays. The affected battery chemistries—LFP and LMFP—are integral to next-generation EV platforms due to their safety, cost, and cycle-life advantages.
This development also intersects with existing U.S. policy moves under the Inflation Reduction Act, which aims to reduce dependence on Chinese components. The Chinese export controls may accelerate U.S. efforts to localize battery manufacturing, expand domestic lithium processing, and invest in alternative chemistries through public and private R&D channels.
In India, the effects are centered on manufacturing continuity and strategic sourcing. India imports the majority of its lithium-ion battery inputs, including cathode materials and machinery, from Chinese suppliers.
The new rules introduce potential delays and cost variability into sectors where timelines are linked to national EV and renewable energy targets.
Sectors such as solar panel manufacturing and electronics, which have previously encountered similar disruptions due to Chinese export policies on graphite and rare earths, may experience compounded risks. The policy highlights India’s dependence on foreign technology and underlines the urgency of diversifying technology partnerships and investing in local R&D and production capacity.
China’s catalogue update, which also tightens controls on other metallurgical and rare earth processes, is part of a broader strategy to consolidate technological leadership in high-impact sectors. Its implications will likely extend across trade, industrial policy, and innovation strategies in multiple regions.
China has enacted strict new export controls on key battery technologies, reshaping the global supply landscape for electric vehicles and clean energy—and triggering policy and supply chain implications for both the United States and India.
Effective July 15, China’s Ministry of Commerce officially restricted the export of technologies critical to lithium battery production.
The controls apply to processes used in manufacturing lithium iron phosphate (LFP) and lithium manganese iron phosphate (LMFP) battery cathodes, as well as advanced methods for lithium extraction and refining from brine and spodumene.
Exporters must now obtain government approval before transferring these technologies abroad. The ministry cited increasing use in “sensitive fields” and stated that the classification adjustment reflects recent technological developments.
While not a blanket ban, the new licence regime adds a layer of complexity to international collaboration and sourcing.
For the United States, the impact centers on supply chain continuity and technological access. U.S. automakers and energy storage firms, many of which rely on components and processes refined in China, may face input cost pressures and production delays. The affected battery chemistries—LFP and LMFP—are integral to next-generation EV platforms due to their safety, cost, and cycle-life advantages.
This development also intersects with existing U.S. policy moves under the Inflation Reduction Act, which aims to reduce dependence on Chinese components. The Chinese export controls may accelerate U.S. efforts to localize battery manufacturing, expand domestic lithium processing, and invest in alternative chemistries through public and private R&D channels.
In India, the effects are centered on manufacturing continuity and strategic sourcing. India imports the majority of its lithium-ion battery inputs, including cathode materials and machinery, from Chinese suppliers.
The new rules introduce potential delays and cost variability into sectors where timelines are linked to national EV and renewable energy targets.
Sectors such as solar panel manufacturing and electronics, which have previously encountered similar disruptions due to Chinese export policies on graphite and rare earths, may experience compounded risks. The policy highlights India’s dependence on foreign technology and underlines the urgency of diversifying technology partnerships and investing in local R&D and production capacity.
China’s catalogue update, which also tightens controls on other metallurgical and rare earth processes, is part of a broader strategy to consolidate technological leadership in high-impact sectors. Its implications will likely extend across trade, industrial policy, and innovation strategies in multiple regions.