China Restricts Export of Electric Vehicle Battery Technologies

The Government of China implemented export restrictions on eight key technologies critical for lithium processing and the production of electric vehicle batteries in July 2025. The new rules require manufacturers to obtain government licenses before transferring these technologies overseas through trade, investment, or cooperation.

These restrictions target five technologies related to lithium extraction and processing, along with three technologies used to create intermediate substances for battery cathodes, including lithium iron phosphate and lithium manganese iron phosphate. The Ministry of Commerce of the People's Republic of China stated the measures aim to safeguard national economic security and development interests, following previous curbs on magnets and rare earth elements.

While the immediate impact on major producers like CATL and BYD Company may be limited because their international plants focus on cell assembly rather than upstream processing, the move increases uncertainty for Chinese firms expanding into the European Union and the United States. Ford Motor Company stated it is not affected by the new rules.