KATHMANDU: China has introduced new rules to regulate the export of electric vehicle (EV) battery technology. The move aims to protect its leadership in the global EV market according to NYT.
On Tuesday, the Ministry of Commerce announced that eight key battery technologies will now require a government license before they can be transferred abroad. This includes any form of trade, investment, or technology sharing.
The decision may slow down Chinese EV companies planning to set up factories in other countries.
Over the past five years, Chinese manufacturers have made major progress in battery innovation. They produce affordable batteries with longer driving range. These batteries are helping China lead in EV production globally.
One of the key technologies affected is lithium iron phosphate (LFP) batteries. These now account for over half of the global EV battery market. Most LFP batteries are made in China.
The ministry did not explain the reason in detail. It stated that the change is based on how technology has developed over time.
The new rule covers three core LFP technologies and five lithium processing technologies used in all types of batteries.
LFP batteries were first developed in the United States. Later, Japanese researchers improved their performance. Chinese companies like BYD and CATL then enhanced them further. They made them more durable and easier to produce at scale.
This policy follows another recent move by China. In April, it required licenses for exporting rare earth metals and magnets used in clean energy.
With these changes, China is signaling its intent to guard its advantage in EV technology and secure its role as a global leader in the sector.
