China’s proposed export ban on battery technology has the potential to reshape global supply chains and impact the renewable energy transition
Batteries are a key pillar within the global push for sustainability, powering everything from EVs to renewable energy storage systems.

Semiconductors, wind turbines, solar panels and hydropower technologies also play key roles, but batteries stand out as critical enablers of the transition to clean energy.

At the heart of this sector lies China, the world’s dominant exporter of battery technologies and the materials needed to make them.

Now, that dominance is under fresh scrutiny. The Chinese Ministry of Commerce has proposed restrictions on exporting technologies vital to producing lithium iron phosphate (LFP) and lithium manganese iron Phosphate (LMFP) battery cathodes.

These materials are essential to powering EVs and renewable energy systems globally. The announcement has sparked significant concern, raising questions about the future of supply chains and the ripple effects across industries dependent on these batteries.

China’s move to tighten control
LFP and LMFP battery technologies have risen to prominence in recent years, now fuelling nearly half of the world’s EVs.

China’s proposed export ban appears to be part of a larger strategy to maintain its leadership in the sector. By limiting global access to these technologies, China may be solidifying its position while responding to rising geopolitical tensions with the US and Europe.

John Passalacqua, CEO of First Phosphate Corp, frames the move within a broader context of tech-related disputes.

“The first shot was fired by defence contractors and computer chip makers,” he says.

John Passalacqua, CEO of First Phosphate Corp
“What’s extremely interesting now is that China’s response is not only in the chip sector but also in the lithium processing technology space.”

This is not just about market control but also about safeguarding national interests in a world where batteries increasingly underpin energy security and innovation.

A turning point for the global battery market
The potential fallout from China’s restrictions is twofold: immediate challenges for battery manufacturers reliant on Chinese materials and long-term opportunities for diversification.

Industry leaders agree the shift could spur Western manufacturers to ramp up alternative production methods and reduce dependence on Chinese exports.

Behnam Hormozi, CEO of Integrated Power, highlights the urgency: “The Western LiB ecosystem will now only succeed if they have access to a non-Chinese LFP/LMFP CAM manufacturing technology.”

Behnam Hormozi, CEO of Integrated Power
While the restrictions may initially disrupt supply chains, others see room for adaptation.

Peter Willemsen, President of APAC at Webasto, predicts a more nuanced impact: “China will not drive this dogmatically but—in its typical fashion—in a trial-and-error approach.

“Some technologies for some companies may be impacted case by case, but there will be no blanket approach.”

Peter Willemsen, President of APAC at Webasto
This dynamic could push other economies to innovate and find new ways to compete in the battery market. Peter suggests the situation might even help global industries “find a foothold back into electrification”.

Alternatives and adaptation
The export ban is intensifying the race to innovate outside China. Alternatives like sodium-ion batteries and novel lithium processing methods are emerging as viable options.

Qianran He, an investor at TDK, stresses the importance of acting now. “First graphite, then LFP—there are more joining the ban list. It’s a long game, but we need to invest in alternative innovations now.”

Some companies are already taking decisive action. Integrals Power has built a pilot plant capable of producing 20 tonnes of LFP cathode material annually, using raw materials sourced from Europe and North America. The approach aims to create more resilient, transparent supply chains while reducing reliance on Chinese exports.

“There is not enough margin in Western terms in the chemical sector,” warns Dr Tara Lindstedt, Chief Development Officer at InoBat.

Dr Tara Lindstedt, Chief Development Officer at InoBat
“We need to change our mindset and curb the excessive greed for margins and ROI.”

A critical moment for sustainability
The timing of China’s proposed restrictions is significant. As industries worldwide accelerate their shift away from fossil fuels, disruptions in the battery supply chain could slow progress towards sustainability goals. The global energy transition depends heavily on reliable, accessible battery technology.

For many, this development is a wake-up call. Countries and companies must now prioritise investment in alternative technologies and localised production to reduce vulnerability to geopolitical shifts.

John sums up the sentiment: “This moment should serve as a wake-up call for the rest of the world.”

The road ahead may be uncertain, but the push for innovation and supply chain resilience could ultimately strengthen global efforts to achieve a sustainable, electrified future.