The "Catalogue of Technologies Prohibited or Restricted from Export in China" proposes to add restrictions on the export of lithium battery cathode material preparation technologies and lithium extraction-related technologies. In response, several related publicly listed firms told reporters from the Financial Associated Press that they are currently assessing the situation. A representative from Lanxiao Technology told the Financial Associated Press: Generally, "restricted export" and "prohibited export" have certain differences. We will continue to monitor the timing and conditions of subsequent policy implementation. Meanwhile, the draft for public consultation also highlights that China's salt lake lithium extraction technology is globally advanced.
On January 2, the Department of Trade in Services and Commercial Services of the Ministry of Commerce issued a notice on the public consultation regarding adjustments to the "Catalogue of Technologies Prohibited or Restricted from Export in China." In the restricted export section, new additions include battery cathode material preparation technologies (Code: 252604X), such as LFP preparation technology, LMFP preparation technology, and phosphate cathode raw material preparation technology. Under the non-ferrous metal metallurgy technology category (Code: 083201X), new control points were added, including spodumene-to-lithium carbonate production technology, spodumene-to-lithium hydroxide production technology, lithium metal (alloy) and lithium material preparation technology, direct lithium extraction from raw brine technology, and lithium-containing purified solution preparation technology.
According to the "Regulations of the People's Republic of China on the Administration of Technology Import and Export" (hereinafter referred to as the "Regulations"), technology export refers to the transfer of technology from within China to abroad through trade, investment, or economic and technical cooperation. Technologies listed in the "Catalogue" as prohibited from export cannot be exported. Technologies listed as restricted from export are subject to license management; without a license, export is not permitted.
It is understood that on December 21 last year, the Ministry of Commerce, in conjunction with the Ministry of Science and Technology, revised and issued a new version of the "Catalogue of Technologies Prohibited or Restricted from Export in China" (Announcement No. 57 of 2023 by the Ministry of Commerce and the Ministry of Science and Technology, hereinafter referred to as the "Catalogue"). The Department of Trade in Services and Commercial Services stated that the "Catalogue" was adjusted twice in 2008 and 2020. This revision is a routine adjustment made in accordance with the law to adapt to changes in technological development and meet the needs of technology trade management.
Industry-wise, in recent years, the overseas layout of cathode material and lithium mine enterprises has been increasing. Companies such as Easpring Technology, Ronbay Technology, and Lopal have established overseas projects related to LFP and LMFP. To improve lithium mine self-sufficiency, domestic lithium companies such as Tianqi Lithium, Ganfeng Lithium, Chengxin Lithium, and Yahua Group have also set up lithium mine projects overseas, with finished products generally transported back to China in the form of concentrates.
Regarding this notice, a representative from Chengxin Lithium (002240.SZ) told reporters that the company is currently studying the matter. A representative from Yahua Group (002497.SZ) stated that they are in communication with relevant departments to understand the situation.
It is understood that Lopal's (603906.SH) first-phase project in Indonesia, with an annual capacity of 30,000 mt of LFP, has completed construction and commenced production. A representative from Lopal told the Financial Associated Press that the Indonesia project currently does not involve high-voltage dense products and is expected to have a relatively small impact on the company's Indonesia project. The second-phase project in Indonesia will begin construction in Q1 this year.
As the first domestic company capable of large-scale industrialisation of the "adsorption + membrane" process, Lanxiao Technology has so far completed more than 12 salt lake lithium extraction projects with capacities exceeding 1,000 mt each. A representative from Lanxiao Technology's (300487.SZ) securities department told the Financial Associated Press that "we" have noticed this policy, which is currently in the draft stage and has not yet impacted the company's existing business. The company is also monitoring the specific measures and details of the export restrictions. Generally, "restricted export" and "prohibited export" have certain differences. "We" will continue to monitor the timing and conditions of subsequent policy implementation. Meanwhile, the draft for public consultation also highlights that China's salt lake lithium extraction technology is globally advanced.
