China’s New Export Controls on Lithium Batteries and Graphite Materials: A Global Turning Point

• Published 2025-10-11 09:42:00
• By Anupam Nath

On October 9, 2025, China’s Ministry of Commerce and the General Administration of Customs jointly issued Announcement No. 58 of 2025, introducing export controls on lithium batteries, cathode materials, and artificial graphite anode materials.

The policy, effective from November 8, 2025, marks a significant move to protect national security and maintain China’s leadership in the global battery industry.

A Strategic Move for National Security

According to the official statement, the export controls aim to safeguard national security, prevent uncontrolled technology transfers, and fulfill international obligations such as non-proliferation.

This move doesn’t represent a complete export ban, but rather a targeted control on specific high-end technologies and materials that could influence the development of advanced energy systems abroad.

The restrictions apply to high-performance lithium-ion batteries with a gravimetric energy density of 300 Wh/kg or above, which are far beyond the capacity of most current EV batteries.

They also include key production equipment such as winding machines, electrolyte filling systems, hot pressing units, and formation-grade equipment used in lithium battery manufacturing.

Comprehensive Control List

The announcement lists a wide range of controlled items, covering not only finished batteries but also key raw materials and manufacturing technology.

Among them are high-compaction LFP cathode materials, nickel-cobalt-manganese precursors, nickel-cobalt-aluminum hydroxide, lithium-rich manganese-based cathode materials, and artificial graphite anodes.

Equipment used in the production of these materials—such as graphitization furnaces, coating reactors, and granulation systems—also falls under the control regime.

Exporters of these items will now be required to obtain official export licenses, declare material parameters, and ensure full compliance with the Export Control Law.

Impact on the Global Battery Supply Chain

China dominates over 70% of the global market for cathode and anode materials and controls more than 80% of global lithium battery production capacity.

The new restrictions will have far-reaching implications for global supply chains, especially for Japan, South Korea, Europe, and the United States, which heavily depend on Chinese battery materials.

International EV manufacturers and energy storage companies may now face supply shortages and will need to invest more in domestic R&D and localized production.

Meanwhile, Chinese companies could benefit from this policy, as it encourages them to focus on internal innovation and expand domestic applications of high-end battery technologies.

Long-Term Implications

In the short term, this decision could disrupt global EV and battery supply networks. However, in the long run, it strengthens China’s strategic position in clean energy technology.

By controlling the export of advanced materials and equipment, China aims to secure its dominance in the next generation of lithium battery technology while ensuring that core innovations remain within national borders.