China Tightens Grip on EV Battery Technology with New Export Rules

On July 15, 2025, China’s ministries of Commerce and Science & Technology officially added eight technologies critical to electric vehicle (EV) batteries to its export-control list. That means any overseas sharing whether through trade, investment, or collaboration now requires a government license.

These controls specifically target three processes used to create cathode materials like lithium iron phosphate (LFP) and lithium manganese iron phosphate (LMFP) and five methods tied to lithium extraction and processing, upstream steps essential to battery production.

China already dominates much of the EV battery value chain, accounting for roughly 67% of global battery production and over 95% of critical material output, including LFP precursors. With these export restrictions, Beijing is aiming to preserve its technological edge while responding to mounting international pressure and trade uncertainty.

Short-term, this move will likely slow overseas battery projects and raise costs especially for companies like Ford and CATL that planned to transfer technology abroad. In the longer run, it may spur other countries to invest more in their own battery innovation and infrastructure, reducing dependency on Chinese tech.