China Proposes New Export Curbs on Critical Minerals, Battery Technology

Employees work at a factory that produces lithium batteries for export in Huaibei, Anhui Province, China, on June 11, 2024. STR/AFP via Getty Images

The Chinese communist regime has unveiled a new proposal to tighten restrictions on technology used for batteries and critical minerals processing amid escalating tensions with the United States and other trading partners.

China proposed to broaden or modify the existing restrictions on technology and processes for extracting critical minerals, such as metallic gallium and lithium, according to a document released by the Ministry of Commerce on Jan. 2.

Beijing is also considering adding certain technologies, such as those related to battery electrode material preparation, to its export control list.

In a notice accompanying the document, the ministry stated that these changes aim to “strengthen the import and export management of technology.” It didn’t specify when these measures would take effect but stated that it’s seeking public comments, with a deadline set for Feb. 1.

The proposal follows a series of bans and export controls on critical minerals, an industry in which China plays a dominant role in the global supply chains.

It also comes just weeks ahead of the inauguration of President-elect Donald Trump, who has threatened to slap extra tariffs on products imported from China.

When asked about the proposed changes at a regular briefing on Jan. 3, the Chinese Foreign Ministry defended the regime’s decisions.

“As a principle, China applies fair, reasonable and non-discriminatory export control measures in line with law and regulations, based on its own needs and drawing on widely recognized international practices,” Mao Ning, the ministry’s spokeswoman, told reporters in Beijing.

Adam Webb, head of battery raw materials at consultancy Benchmark Mineral Intelligence, said China’s proposals would help the country retain its 70 percent grip on the global processing of lithium into the material needed to make electric vehicle (EV) batteries.

“These proposed measures would be a move to maintain this high market share and to secure lithium chemical production for China’s domestic battery supply chains,” he said.

Security, Human Rights, and Environment Concerns

China is the world’s leading producer or processor of several critical minerals, including rare earth elements, graphite, and antimony. These minerals play an essential role across various sectors, from high-tech applications such as advanced chips to military technologies such as ammunition and missile systems.

Concerns have grown in Washington about the U.S. dependence on China for these strategically important minerals, especially after Beijing tightened controls over metals with semiconductor applications in July 2023.

According to an analysis by Silverado Policy Accelerator, a nonprofit think tank, the United States is “fully or almost fully” dependent on imports for nine critical minerals that pose a significant risk to national security.

“[This heavy reliance creates] critical vulnerability that could disrupt key industries if the supply is restricted or even suddenly cut off due to a variety of reasons, including government measures such as export controls or bans imposed for geopolitical or national interest reasons,” according to a report published in September 2024.

Aside from security issues, ethical and environmental concerns surround the supply chains controlled by the Chinese Communist Party (CCP). U.S. lawmakers and analysts have pointed to the CCP’s use of forced labor and the release of toxic chemicals into water and air during the mining and processing of critical minerals.

Beijing recently imposed an export ban on several minerals identified by the Department of the Interior as critical to U.S. economic and national security. This marks the first time a ban has been aimed specifically at the United States, restricting all shipments of gallium, germanium, antimony, and superhard materials.

Unveiled on Dec. 3—just a day after Washington tightened restrictions on China’s access to advanced semiconductors—the ban signals a sharp rise in the already simmering trade tensions between the world’s largest economies, according to analysts.

Rep. John Moolenaar (R-Mich.), chairman of the House Select Committee on the CCP, said Beijing’s action ”reaffirms the urgency of reducing our dependence on imports” from China.

“The CCP sees trade as a weapon to coerce the United States and will utilize every point of leverage it possesses over American companies and supply chains,” Moolenaar said in a Dec. 5 statement.

Experts in critical minerals deemed Beijing’s ban largely symbolic, given that these metals have already been listed under the CCP’s export control restrictions.

“However, China has dominance in a much larger number of commodities than these four minerals,” analysts at the Center for Strategic and International Studies, a Washington-based think tank, stated in a recent report.

“Additional export controls—including bans—are likely as a new administration takes office with ambitious tariff policies and a history of trade wars.”

Reuters contributed to this report.