On 15 July 2025, China's Ministry of Commerce ("MOFCOM") and Ministry of Technology jointly issued an amendment ("Amendment") of the Catalogue of Technologies Subject to Export Prohibitions and Restrictions (《中国禁止出口限制出口技术目录》) ("Catalogue") which took effect immediately upon publication.
The official Amendment follows a consultation draft published in January this year.
The Amendment imposes export restrictions on key technologies relating to critical battery materials and minerals, impacting the upstream and midstream battery supply chain. This includes restrictions on cathode electrode material preparation technology on LFP and LMFP, lithium carbonate / lithium hydroxide preparation technology as well as gallium processing technologies. LFP and LMFP cathode, lithium carbonate and lithium hydroxide being some of the most critical battery materials and chemicals required for the manufacturing of battery cells.
This article provides a high-level overview of the Amendment, the implications on upstream and midstream battery supply chain, and key considerations for industry participants.
Amendment of the Catalogue
Other than minor revisions on the technical parameters (as further detailed below), the Amendment largely follows the scope proposed in the draft consultation version published in January.
The following battery related technologies are added to the Catalogue under the "restricted technologies" category, this includes, cathode materials technologies and various lithium processing and refining technologies as well as gallium extraction technologies:
- Cathode related technologies:
- Lithium iron phosphate (LFP) cathode material preparation technology
- Lithium manganese iron phosphate (LMFP) cathode material preparation technology
- Phosphate cathode electrode raw materials preparation technology
- Lithium processing technologies:
- Lithium carbonate production from spodumene
- Lithium hydroxide production from spodumene
- Metal lithium (alloy) and lithium material preparation technology
- Lithium extraction from brine
- Preparation technology for lithium-containing purified liquid
- Non-ferrous metal smelting and rolling
technologies:
- Technology and process for extracting metallic gallium from alumina mother liquor by ion exchange method, resin method and others
In particular, compared to the consultation draft version released in January, the technical specifications of certain restricted technologies have been revised. For example, the condition for the required compaction density of LFP is changed from "≥2.58g/cc at 300MPa" to "≥2.58g/cc at 220MPa". Similarly, for LMFP the compaction density is changed from "≥2.38g/cc at 300MPa" to "≥2.38g/cc at 220MPa". The technical parameters for phosphate cathode electrode raw materials is also changed from "tap density > 2.1g/cc" to "tap density > 1.2g/cc".
Implications on upstream and midstream battery supply chain
Under existing China's Technology Export Regulations, including but not limited to Foreign Trade Law, Administrative Regulations on Technology Import and Export and the relevant implementing regulations:
- technologies categorised as "prohibited" are banned from technology export;
- technologies categorised as "restricted" are subject to prior approval from the Ministry of Commence ("MOFCOM") before such technology export;
- technologies which are not prohibited nor restricted should complete a record filing/registration with MOFCOM for the export of technology within 60 days from the signing of the contract of export.
The "export of technologies" is defined widely in the relevant regulations, which includes joint venture agreement, licensing agreement, cooperation agreement, agreement for the transfer of patent, patent application right or trade secret, technology services agreement and other form of agreement having an effect of technology transfer (together referred to as "contract for export").
Subsequent to the promulgation of the Amendment, any contract for export relating to cathode electrode material preparation technology on LFP and LMFP, lithium carbonate / lithium hydroxide preparation technology as well as gallium processing technologies, is now categorized as "restricted", meaning prior approval from MOFCOM is required under Chinese laws.
Generally, the permitting process for the export of restricted technologies involves a two-step approval process:
- Step 1:
- the exporter is responsible to obtain a preliminary export licence from MOFCOM prior to execution of a contract for export; and
- within the validity period of the preliminary export licence, the exporter must execute such the contract for export;
- Step 2:
- exporter must apply for a formal export licence from MOFCOM before actual export of the technology; and
- the contract for export is only effective after the formal export licence is granted.
Generally, local Bureaus of Commerce (the local branch of MOFCOM) and the local Bureaus of Technology (the local branch of Ministry of Technology) will jointly review the application for a technology export licence. In practice, it is not uncommon that local bureaus escalate the matter to, and obtain an opinions from, their superiors at the ministry level.
Key Considerations for Global Battery Supply Chain Industries
- Focus on upstream and midstream technologies: This round of tightening regulations for technology export focuses on the upstream and midstream battery value chain, such as cathode, lithium processing, and lithium refining-related technologies. These are highly critical battery materials and minerals for the entire value chain, and therefore signals a further step from the Chinese regulators to solidify its dominance in the upstream value chain. It remains possible that other battery material technologies (e.g. other key battery materials: anode, separator, electrolyte and others), as well as downstream cell manufacturing technologies, may be placed on the restricted list in future, given the rising global trade tensions.
- Compliance risk: Categorising these upstream and midstream battery technologies as restricted technologies means that companies involved in joint ventures, licensing agreements or other form of technical services agreement will need to obtain export licences from MOFCOM even before entering into the agreements. The export of these technologies is not outright prohibited, but the permitting process certainly increases the time and costs of compliance, with additional uncertainties and risks if the export licence is ultimately not obtained. We expect that the evaluation criteria from Chinese authorities may evolve based on changes of China's foreign trade policy and industry export policy.
- Importance of reviewing existing contracts: The new Amendment is unlikely to apply retroactively to contracts signed before the promulgation of the Amendment, meaning exporting a technology which is previously within the unrestricted category should not constitute non-compliance, provided that it had complied with the laws at the relevant time of signing. However, it is possible that the ongoing implementation of the existing contracts signed before the Amendment will be required to comply with the regulations, if there is a future export of technology after the promulgation. We strongly recommend reviewing your existing signed contracts and consult with your professional advisors to ensure compliance with the applicable laws.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
