MofCom restricts battery cathode, gallium extraction tech exports
The commerce ministry (MofCom) has officially expanded its list of critical technology export restrictions.
- We've been awaiting this update, published Tuesday, since a draft version circulated in January.
Brace yourself: It's as bad as feared.
First, it formalizes export licensing requirements for key technologies used in the preparation of battery cathode materials.
That includes tech for industry-critical lithium-iron-phosphate (LFP) and lithium manganese iron phosphate (LMFP) battery cathodes – which are key to the long-range, ultra-fast-charging LFP batteries helping China cement its global battery leadership over South Korean and Japanese rivals.
The upshot: The restrictions will help further lock in Chinese companies' battery tech advantages.
Second, it amends existing controls on nonferrous metals to cover myriad lithium processing and gallium metal extraction technologies.
- This follows December's blanket ban on gallium, germanium, and antimony exports to the US – itself an escalation from restrictions circa December 2023 and September 2024, respectively.
The upshot: It will become even harder to eat into China's lithium processing dominance and build non-Chinese
Get smart: We expect Chinese companies will be cleared to use the tech in their overseas facilities – but not to license it to foreign competitors.
- China already dominates production using these technologies, so the status quo doesn't change much – but now other countries will have an even harder time changing that status quo.
Get smarter: Beijing won't make it easy to replace Chinese capacity using Chinese tech.
- If a mineral is controlled, sooner or later, its processing technology will probably be controlled, too.