China’s commerce ministry announced plans on 2 January to limit exports of lithium iron phosphate (LFP)/lithium manganese iron phosphate (LMFP) processing technologies. Its consultation process will run until February.
Hongqiu Su, battery metals analyst associate at the Shanghai Metals Market stated in a briefing note the restriction will also cover:
- lithium manganese iron phosphate (LMFP) battery material
- phosphate-based cathode precursor preparation technology
- extraction of gallium
- techniques for producing lithium carbonate
- direct lithium extraction from brines
- preparation of purified lithium solutions.
Kevin Chang, analyst at Wood Mackenzie, said on X that the focus is on technology. Battery materials and manufacturing equipment that use those technologies can still be exported. “The aim is to guide Chinese companies to invest overseas/export cautiously,” he added.
Analysts said the move is partly a response to incoming president Trump’s planned tariffs on imports from China. As China controls the global supply chain of LFP and LMFP, this could, for example, have a severe knock-on effect on the global market for energy storage based on LFP or manufacturing of cells based on LFP currently coming from China.
