Global supply chains brace as China’s Ministry of Commerce proposes a series of restrictions on the export of critical battery technologies and materials
There are several technologies that will be dispensable in the world’s pursuit of sustainability. Semiconductors, the key components in electronic technologies, are one such item.
Then of course there is the technology that allows us to produce clean renewable energy, such as wind turbines, solar cells and hydropower dams.
But perhaps the most important thing for the coming transition is battery technology. Batteries are vital for renewable energy storage, electric vehicles and far more besides.
Currently, China is the world’s largest exporter of battery technologies as well as the component parts and materials that are used to manufacture batteries, meaning global supply chains are reliant on the discretion of the Chinese government and Chinese companies.
So, the news that the Chinese Ministry of Commerce has proposed an unprecedented export ban on technologies critical to producing Lithium Iron Phosphate (LFP) and Lithium Manganese Iron Phosphate (LMFP) battery cathodes has caused some disquiet.
In short, the proposed restrictions could have far-reaching consequences for EV manufacturing and energy storage systems worldwide.