The demand for electric vehicles (EV) worldwide is growing rapidly, but the recent decision of China has turned this growth. China has now banned the export of major techniques related to EV battery manufacturing and lithium processing. This can slow the production of EV in many countries including India.
China’s new step
According to the Chinese Ministry of Commerce, now some advanced construction techniques of EV batteries can be sent abroad only when the government gets official license. This means that now no foreign company or partner will be able to take these techniques directly from China. This rule will specifically affect companies that depend on Chinese technology. China has imposed technical restrictions before China’s ban on technology is not new. Earlier, he had banned the export of rare soil substances and magnets used in electric vehicles, electronics and defense equipment. China is the largest producer of EV batteries, China is already at the forefront of EV battery manufacturing. According to research company SNE, about 67% of EV batteries sold in the world are manufactured by Chinese companies. These include large companies like CATL, Byd and Gotion. CATL also supplies batteries to Tesla and has plants in Germany, Hungary and Spain. At the same time, byd has become the largest EV company in the world, leaving behind Tesla in 2024.
Which technology is banned?
This time China’s new ban is on Lithium Iron Fostete (LFP) battery technology. These batteries are inexpensive, charged quickly and are considered safe. According to 2023 data, China has a 94% stake in LFP battery manufacturing and 70% in lithium processing. This means that China has almost complete control over the region and wants to maintain this control.
Experts say that this decision of China will have a direct impact on countries like America, Europe and India. This may reduce the supply of EV batteries, which will make vehicles expensive and will affect the development plans of the companies. Countries like India, which are highly dependent on China for EV technology, may face delays and increase in costs.
