China plans new export restrictions on EV technology
China plans new export restrictions on EV technology
Beijing plans to limit the export of technologies that are used to extract minerals that are decisive for the growth of the global electric vehicle industry (EV). This measure takes place in the course of the intensified technology competition with Washington, and that before the newly elected US President Donald Trump.
changes in the export control system
China also intends to include the technology for battery cathodes in its list of controlled exports. This goes from des Ministry of Commerce, which was published on Thursday and obtained public comments. These new restrictions complement already proposed restrictions on techniques for the production of lithium and gallium.
extensive export controls in view
If the new measures are approved, you would be a future round of export controls that impose China upset with a variety of critical materials and the technologies required for this. These are crucial for the production of semiconductors and EV batteries.
When asked about the proposals during a regular press conference on Friday, Mao Ning, spokeswoman for the Foreign Ministry: "What we can basically say is that China implements fair, reasonable and non -discriminatory export control measures."
response to new US regulations
The plan became known a month after China's ban on selling a number of materials that are crucial for the production of semiconductors and other technologies - including gallium, Germanium, antimony and other "super -hard" materials - to the USA. This measure was a response to new export controls for semiconductors made in the USA, which were introduced by the outgoing bidding administration.
The latest proposals could be a strategy for using the resources as a weapon to secure a negotiation advantage from Trump's second term, Liz Lee, a director at Counterpoint Research, told CNN.
China's role in the global market
If implemented, a ban or a restriction "China's dominance in the battery market could significantly strengthen, especially to promote its supply chain for EV batteries," she continued. "Depending on the scope of the export controls, this could be problematic for western lithium producers who want to use Chinese technologies for lithium production, since lithium is one of the core materials for battery cathodes."
china has a dominant position in the global industry for materials such as gallium, a soft metal that is often used to manufacture connections that enable radio frequency chips for mobile phones and satellite communication. Also lithium, which is widespread in everyday life, since it is used for the production of batteries for everything from smartphones to electric vehicles, plays a central role.
effects on the lithium industry
Adam Webb, head of the raw materials for batteries at the Benchmark Mineral Intelligence consultancy, told Reuters that China's proposal would help keep the "70%control" via global lithium processing. "These proposed measures would be a step to secure this high market share and to ensure lithium chemical production for China's domestic battery supply chains," he was cited.
While an iPhone only requires a small amount of lithium, an average EV battery requires about eight kilograms of this material. For this reason, new restrictions on lithium extraction technology could be particularly relevant because global demand for electric vehicles is growing. The International Energy Agency predicted that the world only 50% of the lithium request until 2035 ceilings.
growth of demand for lithium-ion batteries
The global demand for lithium-ion batteries is expected to increase sharply over the next 10 years. mcKinsey reported 2023 that The need for gigawatt hours from around 700 in 2022 will increase to around 4,700 to 2030.
Lee noted that Chinese decision-makers must take into account the global ambitions of Chinese electric vehicle and battery brands when deciding on possible restrictions, as this could lead to retaliation measures of the West. The electric vehicle giant BYD produces its own batteries and is expanding aggressively abroad, while Catl, the largest battery manufacturer in the world, controls 40% of the EV battery market.
Expansion of export controls to US companies
Regardless of this, the Ministry of Commerce on Thursday has put 28 US companies and institutions on its export control list for the first time on Thursday, including important armaments such as Lockheed Martin and Raytheon Missiles & Defense.
This export control list, which regulates the sale of dual-use technologies and is based on the “Entity List” of the US Ministry of Trade, was introduced in November.
cnns Fred He contributed to reporting.
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