Core Viewpoint - The Chinese government has announced export controls on lithium batteries, high-end anode and cathode materials, and core manufacturing equipment, effective from November 8, 2025, marking the first direct export control on lithium batteries in the country [2][3]. Group 1: Control Scope - The export controls specifically target high-end lithium battery technologies, including lithium-ion batteries with an energy density of ≥300 Wh/kg, which are primarily used in high-end electric vehicles, drones, and defense applications [6]. - The manufacturing equipment and related production technologies subject to control include winding machines, stacking machines, and liquid injection machines, with specific performance criteria [6]. Group 2: Company Responses - Companies in the lithium battery supply chain have assessed the impact of the export controls. For instance, Funeng Technology stated that the majority of its exported battery products are not included in the control list, and its overseas production capacity in Turkey ensures stable supply to international clients [7]. - Tinci Materials indicated that its main products, multi-component cathode materials, are not affected by the controls, which may enhance the competitive position of its products in the global market [8]. - PULITECH and other companies reported minimal impact on their operations, as their products and equipment primarily fall outside the scope of the new regulations [9][10]. Group 3: Industry Implications - The export controls are expected to shift production capacity from high-end power batteries to energy storage sectors, potentially stabilizing and lowering raw material costs for energy storage battery manufacturers [10]. - The announcement has significant implications for U.S. companies, as they heavily rely on Chinese imports for lithium-ion batteries, with approximately 65% of the U.S. grid-scale lithium-ion batteries sourced from China [11]. - The controls reflect China's strategic positioning in the global supply chain, indicating a shift from a reactive to a proactive stance in trade negotiations, particularly in the context of energy demands driven by artificial intelligence and data centers [12].