Highlights
- China introduces new export approval requirements for lithium, gallium, and battery cathode preparation technologies.
- Beijing’s strategy aims to control critical processing technologies, engineering talent, and precision equipment.
- The restrictions represent a deliberate effort to maintain technological dominance in rare earth and battery supply chains.
Beijing has moved again to restrict the global diffusion of critical battery and rare earth processing technologies, announcing that government approval will now be required for the export of certain lithium, gallium, and battery cathode preparation technologies—including those for lithium iron phosphate (LFP). These are not outright bans, but the effect is clear: Beijing is building walls around its processing IP, engineering talent, and high-performance tools.
According to Electrive and The New York Times reports , these new export restrictions target:
- Battery cathode preparation processes
- High-purity lithium conversion techniques
- Gallium-based technologies critical to high-efficiency chips and defense systems
This move is part of a broader and deliberate strategy:
- Control the export of critical process technologies
- Restrict the movement of engineers trained in rare earth and battery separation
- Limit the sale of precision equipment used to replicate processing lines outside China
In short, China is not just hoarding minerals—it’s hoarding the means to process them. As countries from the U.S. to the EU scramble to onshore rare earth and battery supply chains, they’re discovering that it’s not just about rocks—it’s about recipes.
Contrast: Crypto Hardware and China’s Open Door
Interestingly, the clampdown doesn’t extend to all advanced sectors. Chinese tech firm Bitmain, a global leader in custom-built chips for cryptocurrency mining, faces no such restrictions. Its high-efficiency ASIC mining rigs are being deployed internationally with ease, including in the United States.
The message? China is selectively restricting outbound flows—preserving dominance where it matters most to its industrial strategy. Rare earth magnets and battery tech are staying home. Crypto, a sector Beijing treats with caution, is allowed to globalize.
Investor Takeaway
For investors and governments eyeing domestic rare earth magnet or battery buildouts: don’t underestimate the tech wall. It’s not just that the raw materials are concentrated in China—the processing know-how, engineering labor, and proprietary machinery are, too. That’s a much harder dependency to break.
Source: Electrive, The New York Times (July 2025)
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