China is considering restricting the export of a mineral technology key to the growth of the global electric vehicle (EV) industry. The plan comes in the backdrop of the ongoing technological conflict with the US. This issue has arisen before the swearing-in of the newly elected President of the United States, Donald Trump.
China’s Ministry of Commerce said in a notification that it is considering adding battery cathode technology to the controlled export list, in addition to proposed restrictions on lithium and gallium production technologies.
“China has always implemented fair, rational and impartial export control measures,” Foreign Ministry spokesperson Mao Ning said at a press conference on Friday.
A month ago, China banned the sale of minerals such as gallium, germanium, and antimony, which are important for semiconductor and other high-tech manufacturing. The ban was part of an escalating technology conflict between the US and China.
The restrictions could have a major impact on global production amid growing demand for lithium. According to International Energy Agency estimates, only 50% of global lithium demand may be met by 2035.
A new level of technology conflict:
China’s Ministry of Commerce has also placed 28 US companies, including Lockheed Martin and Raytheon Missiles, on its export control list. This list is prepared on the lines of the ‘Entity List’ of America.
The decision is likely to create tension in the global EV market. Chinese EV manufacturers BYD and CATL (the world’s largest battery manufacturer) have a large share of the global market. Due to this, it is predicted that China will get a response from the western countries.