In short, the proposed restrictions could have far-reaching consequences for EV manufacturing and energy storage systems worldwide. Why is this happening? In recent years, LFP and LMFP battery technologies have become increasingly important in the global battery market.
How will China's battery technology export restrictions affect you?
How will you be affected by China's battery technology export restrictions? On 2 January, China's Ministry of Commerce (“ MOFCOM ”) announced a key regulatory update that is set to have a knock-on effect and further raise regulatory complexity in the global battery supply chain.
Are LFP & Lmfp battery technologies limiting global access?
In recent years, LFP and LMFP battery technologies have become increasingly important in the global battery market. Together, they currently power nearly 50% of the world's electric vehicles. By restricting global access to technologies like these, China appears to be safeguarding its position as market leader.
How will tightening regulations affect the battery supply chain?
It is therefore expected that the latest round of tightening regulations on technology export for cathode, lithium processing, and lithium refining will have a significant impact on the battery supply chain globally, in particular, on joint ventures, technology licensing or technical service arrangements.
Will China ban lithium iron phosphate & Lmfp battery cathodes?
So, the news that the Chinese Ministry of Commerce has proposed an unprecedented export ban on technologies critical to producing Lithium Iron Phosphate (LFP) and Lithium Manganese Iron Phosphate (LMFP) battery cathodes has caused some disquiet.
Will China restrict exports of key technologies used in lithium refining?
China has outlined plans to restrict exports of key technologies used in lithium refining and electric battery chemical production. The proposal by China's Ministry of Commerce, currently open for public feedback and open to change, includes specific technologies, such as:
Which country exports the most batteries in the world?
Currently, China is the world's largest exporter of battery technologies as well as the component parts and materials that are used to manufacture batteries, meaning global supply chains are reliant on the discretion of the Chinese government and Chinese companies.