China’s new export restrictions on parts of its battery supply chain are the latest proof of Beijing’s willingness to utilize its dominance of a key industry in the transition to clean energy. The Ministry of Trade announced on Thursday that the export of some lithium-ion batteries, together with a few graphite cathode and anode materials, will need government permits from November 8. The ministry explained that some related technologies and equipment will also be subject to supervision of a move announced to Beijing, announced on the rare earth metals. Also read: China stretches restrictions on the export of rare earth technologies, timing of the restrictions and relations with the United States. Beijing implements the strict regime on exports before an expected meeting this month between US President Donald Trump and his Chinese counterpart Xi Jinping in South Korea to discuss a trade agreement. Washington expanded its sanctions last week to include a broader range of businesses attached to its geopolitical competitor. Shares of Chinese battery businesses fell on Friday after the announcement. Contemporary amperex technology fell by 7.3% in Hong Kong, while Eve Energy fell by 10.8% in Shanghai, and Tianqi Lithium lost 4.4%. The restrictions, which target high -quality batteries and materials, indicate the eagerness of China to protect its innovations and complicate Western governments’ efforts to create an alternative supply chain. Historical context of export constraints The move complements previous export restrictions on specific cathode and lithium refinement technologies that were implemented earlier this year, in addition to the restrictions on graphite in 2023. Also read: China consolidates its dominance in lithium with plans to limit technology exports, Citigroup analyzes, including Jack Zhang, wrote in a research letter. Battery supply chain. “” The new mechanism will enable the government to manage exports if necessary, “analysts said, adding that they believe that Beijing is less likely to impose strict restrictions on the sector compared to rarely earth metals. China has the development of electric cell and cathodetologies during its rise in the dominant power of battery components. The battery supply chain is increasingly becoming an important element in the trade dispute with the United States, as Beijing placed some lithium technologies under export restrictions last July. Synthetic-natural graphite has been made, according to the ministry. -Analysts, including Neil Beveridge, written in a research note.
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