China’s Ministry of Commerce declared on Tuesday that the export of critical technologies related to EV battery production must now require government licenses. According to the New York Times, the new restrictions are now in effect and apply to any international transfer of technologies, whether through trade, foreign investment, or joint innovations.
The newly imposed controls cover techniques involved in producing lithium iron phosphate (LFP) and lithium manganese iron phosphate (LMFP) battery cathodes, along with cutting-edge methods for extracting and refining lithium from sources like brine and spodumene.
Exporters are now required to secure official government authorization before sharing these technologies internationally. The Ministry of Commerce attributed the move to increasing use of these technologies in sensitive sectors and noted that the updated classification signifies recent advances in the field.
Though not an outright ban, the licensing rules are expected to add new hurdles for global cooperation and supply chain access.
The latest export restrictions come as U.S. automakers are already grappling with supply chain issues, following April’s curbs on rare earth magnets that are vital for EV manufacturing.
American automakers and energy storage companies, many of which depend on Chinese-developed components and manufacturing processes, may face rising input costs and potential production slowdowns. LFP and LMFP battery chemistries are essential to next-generation EV platforms due to safety, affordability, and long cycle life.
As Chinese technology access becomes increasingly limited, Western manufacturers are racing to diversify and reduce reliance on China’s battery supply chain. Firms outside China are ramping up innovation in advanced LMFP battery development and working to source high-purity raw materials from Europe and North America as part of a broader effort to build more self-sufficient and resilient production networks.
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