China has added several technologies critical to EV battery manufacturing and lithium processing to its export control list. According to the Ministry of Commerce, transferring these technologies overseas through trade, investment, or cooperation now requires a government-issued license.
The restrictions echo recent curbs on rare earth elements and magnets, which are essential in EVs, electronics, and military equipment. China’s control over rare earth supply chains has become a strategic tool in the trade war with the US.
China dominates the global EV market, leveraging a full supply chain from raw materials to battery production. SNE Research reports Chinese battery makers hold at least 67% global market share, supplying major car manufacturers worldwide.
The new licensing requirements add uncertainty for Chinese firms expanding overseas, particularly as the EU imposes tariffs and regions like Southeast Asia and the US push for local production. The ministry said the measures aim to “safeguard national economic security and promote international cooperation.”
Counterpoint Research’s Liz Lee said the move “extends tech decoupling into process IP,” likely prompting the US and EU to boost local refining and precursor production.
CATL, the world’s largest EV battery maker, operates plants in Germany and Hungary and plans a joint venture in Spain with Stellantis. It also licenses tech for Ford’s Michigan battery plant. BYD, now the world’s top EV maker, runs facilities in Thailand, Brazil, and Hungary, while Gotion plans an Illinois plant.
Fastmarkets data shows China commands 94% of LFP battery capacity and 70% of global lithium processing. Adamas Intelligence notes LFP batteries account for 40% of global EV capacity, heavily used by Chinese automakers. IDTechEx’s James Edmondson highlighted BYD’s “Super E-Platform,” offering 250 miles in five minutes of charge, and CATL’s new 320-mile range upgrade, underscoring China’s lead.
