China has just taken another major step to control the global electric vehicle (EV) industry. On July 15, 2025, the Ministry of Commerce added eight critical EV battery technologies to its official export control list. This move now mandates government licenses for any overseas transfer—via trade, investment, or partnership—involving these technologies.(The Wall Street Journal, Semafor, Battery Tech Online, Battery Tech Online)
These new restrictions focus on:
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Three methods used to produce cathode materials like LFP and LMFP, which power affordable and safe EV batteries
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Five key technologies for lithium extraction and processing, essential across all advanced battery types(Evertiq)
These export curbs follow earlier restrictions China placed on rare-earth elements, graphite, and magnets critical for EV motors.(The Wall Street Journal)
Why This Matters
China already dominates the EV battery supply chain:
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Controls about 70% of global EV battery manufacturing(The Wall Street Journal, IDN Financials)
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Holds around 65% global lithium processing capacity and 94% of LFP output(Battery Tech Online)
By restricting these advanced battery-making techniques, China is locking in its leadership and making it harder for other countries to catch up.
Global Impact on EV Industry
1. Tighter Export Licensing
Foreign firms—including automakers planning Chinese joint ventures—must now apply for government approval to use restricted battery technologies overseas. Typical approvals may take 45 days or more, slowing project timelines.(The Wall Street Journal)
2. Threat to U.S. Factory Plans
U.S. automakers like Ford had planned factories (e.g. BlueOval Park, Michigan) using licensed Chinese LFP tech. These plans now face legal hurdles and delays.(Battery Tech Online)
3. Competitive Barrier
New licensing rules raise the entry cost and complexity for foreign companies aiming to replicate China’s EV battery success—with fewer partners able or willing to wait for license approval.
Strategic Aims Behind the Move
China’s policy reflects broader priorities:
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National economic security: Protect technological know-how to stay ahead in EV innovation
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Supply chain control: Prevent other countries from adopting Chinese battery breakthroughs
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Trade leverage: Retain bargaining power in global EV and raw-material negotiations(The Wall Street Journal)
This mirrors past export controls on other strategic tech areas like drones and semiconductors.(Battery Tech Online)
How the U.S. and Other Countries Are Responding
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Policy Pressure & Trade Talks
The U.S. is urging China to ease export restrictions in ongoing trade negotiations. Export curbs are now seen as disruption risks for global EV supply chains.(Axios, AP News) -
Building Domestic Alternatives
American and allied nations are speeding up development of their own LFP and LMFP technologies. Partnerships in North America, Europe, and Australia are forming to reduce dependency.(Battery Tech Online) -
Industry Strategy Shift
Major automakers are exploring non-Chinese tech or investing in new internal teams to design cathode and lithium processing methods that can match LFP performance.
Sector Fallout and Outlook
Supply Chains:
Global battery manufacturing may slow due to limited access to Chinese production methods. Automakers planning overseas factories will face delays or need to redesign projects.
Costs:
Licenses, approval delays, and shifting supply chains could raise EV costs. If foreign firms must redevelop technology independently, price savings may shrink.
Investment & Innovation:
Accelerated innovation is likely, especially in LMFP and even solid-state battery chemistry outside China. Government incentives could fund domestic breakthroughs.
Broader Context: Ongoing Trade Tensions
This export-control move isn’t isolated. It’s part of escalating trade tensions between China and the U.S.:
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U.S. tariffs on Chinese batteries, graphite, and rare-earth minerals
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U.S. sanctions on Chinese firms like CATL, flagged for alleged ties to Chinese military entities(Wikipedia, Wikipedia, Axios, Business Insider)
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FDD warnings about China’s dominance in strategic mineral supply lines(Battery Tech Online)
Together, these trends show a shift from market competition toward technological containment and policy-driven supply chain reshaping.
Key Takeaways
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On July 15, 2025, China added eight high-tech EV battery technologies to its export control list, requiring government permission for export.
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Technologies targeted include LFP and LMFP cathode methods and lithium extraction/processing techniques.
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China’s move reinforces its global leadership in EV battery tech—where it already holds up to 70% market share.
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Plans for U.S. and European factory projects using Chinese tech may hit regulatory barriers.
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Foreign automakers and governments are rushing to build alternative supply chains and homegrown tech solutions.
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The policy is part of a broader trade conflict involving tariffs, sanctions, and efforts to curb reliance on Chinese EV supply.
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