China proposes more restrictions on battery and mineral tech

The Commerce Ministry of China has proposed export restrictions on some tech that is used in the country to make battery components and process critical minerals like lithium and gallium. According to Reuters, the document related to the proposal was published on Thursday. Also Read: iQOO 15 Launch In India: When To Expect The Snapdragon 8 Elite Gen 5 Phone - Check Specs, Design, More

If the same gets implemented then they will work as the latest addition to the export restrictions and bans already imposed by the country. These restrictions mainly focus on critical minerals and the technology used to process them. The main centre of both the processes is Beijing and it has a global impact on the same as well. Also Read: Oppo Find X9 Ultra Leak Hints At 2K OLED Display And Dual Periscope Cameras: All Details Here

What it will mean for the global market?

The head of battery raw materials at consultancy Benchmark Mineral Intelligence, Adam Webb, said that China’s latest proposal will help the country reclaim a 70% grip on the global processing of lithium into the material required to create electric vehicle batteries. He also said that the proposed measures will help the country maintain this high market share and secure lithium chemical production for China’s domestic battery supply chains. Also Read: Is TikTok Returning to India? Website Goes Live Again, But App Still Missing

Based on the level of export restrictions imposed in China, it could create a challenging situation for Western lithium producers who have high hopes of using Chinese tech to produce lithium chemicals. The restrictions on the same could also affect the business of the Chinese battery makers who were looking to expand their business overseas. Some of the most prominent names that could be at the receiving end of the impact are EVE Energy, CATL, and Gotion. Apart from that, some technologies that are used to extract gallium will also be restricted by the Commerce Ministry of China.