China’s export curbs heighten Europe’s battery supply risks

Restrictions on LFP technology disrupt EU's efforts to scale EV production.

China’s new export restrictions on advanced battery technology are reshaping Europe’s electric-vehicle (EV) ambitions, with tighter controls expected to slow production growth and increase reliance on Chinese suppliers, the Mercator Institute for China Studies (MERICS) said in an October report.

Beijing’s rules, introduced in July, limit the export of lithium-iron-phosphate (LFP) manufacturing processes and lithium-extraction technology. These are critical to battery cells that power most mass-market EVs. The curbs add new licensing requirements for transferring technical know-how, equipment, and expertise abroad.

MERICS said the move could delay or disrupt several European projects that depend on Chinese technology partners. Ongoing ventures in Germany and Hungary are already reviewing compliance and supply strategies as they await further clarification from regulators.

MERICS said Beijing’s strategy to keep high-value clean energy manufacturing at home highlights Europe’s need to diversify technology sources through deeper partnerships with South Korea, Japan, and the United States.