Core Viewpoint - The recent adjustment to the "Directory of Technologies Prohibited and Restricted from Export" by the Ministry of Commerce and the Ministry of Science and Technology highlights China's strategic positioning of lithium battery cathode material technology as a strategic resource, similar to rare earths [4][9]. Group 1: Export Restrictions on Lithium Battery Technologies - The Ministry of Commerce announced the addition of "battery cathode material preparation technology" and five lithium extraction technologies to the restricted export list, aiming to safeguard national economic security and development interests [3]. - The new restrictions include specific technologies for preparing lithium iron phosphate and lithium manganese iron phosphate, as well as various lithium extraction methods [3]. - The adjustment reflects a broader strategy to enhance the security and sustainable application of sensitive technologies in the context of global competition [8]. Group 2: Implications for the Lithium Battery Industry - The new regulations are expected to create a technological moat for Chinese companies, protecting their advanced manufacturing processes while not affecting the mainstream technologies currently in use [10]. - Major companies like CATL and BYD are projected to secure substantial orders, with demand for high-pressure lithium iron phosphate materials expected to exceed 800,000 tons by 2025 [10]. - The adjustment in technical standards, such as lowering the compaction test conditions from 300MPa to 220MPa, indicates a focus on next-generation lithium iron phosphate technologies [9]. Group 3: Global Competition and Strategic Responses - The new export restrictions are seen as a response to increasing geopolitical tensions and competition in the lithium battery sector, particularly from Western automakers seeking to acquire Chinese technology [15]. - Chinese companies now hold over 60% of global patents for lithium iron phosphate, with more than 90% of the material produced by Chinese firms [13]. - International automakers, including Ford and Volkswagen, are increasingly reliant on Chinese technology, with Ford acknowledging a significant technological gap in electric vehicle battery technology [14]. Group 4: Future Outlook and Industry Dynamics - The policy adjustment is part of a broader strategy to maintain China's leadership in the global lithium battery supply chain, emphasizing the need for continuous innovation and the establishment of global standards [18]. - Companies like LG Energy Solution and SK On are also ramping up their efforts to develop lithium iron phosphate technologies, indicating a competitive landscape where Chinese firms must remain vigilant against potential technology outflows [16][17].