China has announced restrictions on the exports of five essential metals, including tungsten and indium, that are integral to various industries including clean energy and defence, reported Reuters.
The move follows the recent decision by the US to impose an additional 10% tariff on Chinese goods.
The restrictions have prompted Western companies to urgently reassess and restructure their supply chains for the affected minerals.
The export controls are also seen as the latest effort by China to leverage its dominant position in the mining and processing of these critical minerals and follow the trend of export controls launched since 2023.
Last month, China proposed export restrictions on technology for advanced battery components and processing of lithium and gallium, which are critical to the clean energy sector.
However, the implementation date for these changes, which were open for public comment until early February, was not specified.
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By GlobalData
In December last year, China prohibited the export of antimony, gallium and germanium to the US in response to increased scrutiny of China’s semiconductor industry by the US.
While the ban was exclusive to the US, China had been gradually implementing export licensing for these metals over the preceding 18 months.
China’s dominance in the supply chain for these metals is notable, as it mines or refines a significant portion of the global supply, ranging from 50% to 90%.
In December 2023, China extended its export ban to include technology for manufacturing rare earth magnets, crucial for electric vehicles (EVs), wind turbines and electronics.
Furthermore, in October 2023, China announced the requirement of export permits for certain graphite products, citing national security concerns.
As the leading producer and exporter of graphite, China refines more than 90% of the world’s supply, which is indispensable for EV batteries.
