Ministry of Commerce published a list of proposed goods.
The Chinese government has announced plans to expand its list of export-restricted items. In a notice issued Thursday, the Ministry of Commerce revealed (PDF) the possible inclusion of various technologies related to the production of lithium batteries, as well as the refining of lithium and gallium. The ministry now seeks opinions from stakeholders and the public until February 1, the state-owned Xinhua news agency reports. If implemented, these export curbs would hinder progress in lithium battery-making expertise in other countries, as China has a significant edge in this area. Analysts believe the plan to be aimed at keeping this knowledge a secret to safeguard this advantage.
In December 2023, China introduced similar restrictions on technologies associated with the mining and refining rare earth elements, a sector in which the country also holds a dominant position as the world’s leading supplier.
The newest announcement is regarded as the latest escalation in the ongoing trade war between the United States and China. In early December, China’s Ministry of Commerce imposed a broad export ban on critical materials, including gallium, germanium, and antimony, to the U.S., further intensifying tensions. The U.S. responded by imposing new tariffs on Chinese-made solar wafers and polysilicon, important precursors for producing solar cells (we reported).
Gallium Refining Technologies Also Part of the List
The document by the Ministry of Commerce explicitly lists the technology to recover gallium metal from aluminum oxide. Gallium is mainly produced as a byproduct in processing bauxite ores into aluminum and in zinc refining. China accounts for roughly 98 percent of worldwide primary low-purity gallium, according to data from the U.S. Geological Survey (PDF). However, the know-how to extract gallium as part of aluminum production is available elsewhere, including in Europe. Shortly after the export restrictions on gallium and germanium, which China imposed in August 2023, became known, the European Union called on aluminum and zinc companies to review the production of both technology metals.
Eurometaux, the umbrella organization for the European metals industry, has signaled commitment to enhancing Europe’s supply of critical metals. However, achieving this objective hinges on the creation of conducive framework conditions. A potential expansion in production would necessitate substantial investment and operational costs, which Eurometaux has identified as a key challenge. Additionally, the organization has highlighted the pressing issue of energy costs, which it considers excessively high and unacceptably high.
The industry association European Aluminum had expressed a similar view, pointing out that the economic viability of the main business had to be secured before a by-product such as gallium could be produced (PDF).
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