China’s New Battery Export Rules Near as Global Companies Scramble to Respond
As China’s new export control regulations on batteries and key equipment are set to take effect, the global new energy industry faces a supply chain challenge. Multiple multinational companies, including Reliance Industries owned by India’s richest man Mukesh Ambani, are racing against time to ship ordered battery components out of China.
New Rules Taking Effect, Companies Rush Equipment
China’s Ministry of Commerce and General Administration of Customs jointly issued Announcement No. 58 on October 9, declaring that from November 8, export controls will be implemented on certain lithium batteries, key cathode and anode materials, and their manufacturing equipment and technology. Controlled items include rechargeable lithium-ion batteries (including cells and battery packs) with weight energy density greater than or equal to 300 Wh/kg, their manufacturing equipment, cathode material-related items, and graphite anode material-related items.
According to sources familiar with the matter, Reliance Industries has dispatched a team to China to expedite equipment shipment. At least a dozen other foreign battery industry customers face similar situations, with some companies even forgoing quality assurance or other final manufacturing stages to ship goods more quickly.
One source stated: “Who cares if the equipment has been painted yet or the screws have been checked? They are saying we’ll do the testing once it lands, just get it out the door.”
China Dominates Global Battery Industry Chain
China holds a leading position in global battery technology. According to data from South Korean research firm SNE Research, among the top ten global power battery companies in 2024, Chinese companies occupy six positions with a total market share of 67.1%. CATL maintains the global top position for consecutive years with a 37.9% market share, achieving shipments of 339.3 GWh in 2024, up 31.7% year-on-year.
Chinese customs data shows that in the first eight months of 2024, China exported $48 billion worth of batteries, up 26% year-on-year. This data fully demonstrates China’s core position in the global battery supply chain.
Impact on India’s New Energy Strategy
For Reliance Industries, failure to obtain Chinese equipment in time will affect its plans to locally assemble or produce batteries in India, which in turn will impact the construction of energy storage systems for its mega solar power project strongly supported by the Indian government, aimed at reducing dependence on fossil fuels.
Reliance Industries Chairman Mukesh Ambani previously announced that the comprehensive advanced chemical cell battery factory in Jamnagar, Gujarat, has an annual capacity of 30 GWh and will begin production in the second half of 2025. This project is an important component of Reliance Industries’ plan to invest $7.5 billion in clean energy businesses from 2022 to 2024.
China’s Statement and Industry Response
A spokesperson for China’s Ministry of Commerce stated that the controlled items have obvious dual-use attributes, and China’s implementation of export control measures in accordance with laws and regulations is in line with international common practices. The measures do not target any specific country or region, and for legal and compliant export applications, China will grant permits after review.
As China’s largest battery manufacturer, CATL stated in a statement that exports of equipment and materials needed for its European factories are progressing as planned, and it is confident about exports under the new export regime.
Chinese battery manufacturers are reassuring foreign customers that nothing as drastic as the rare earth export controls is likely to happen. Sources say that export licenses should be granted quickly and widely within a few months of the new regime starting.
Supply Chain Dependency Risks Raise Concerns
This export control has intensified concerns about the risk of being dependent on Beijing for key technologies that can become caught up in trade conflicts. China’s export controls on rare earths introduced in April led to shortages that threatened to cripple car production worldwide.
One source familiar with the matter stated: “It is a very tense situation.” However, foreign companies currently have to play a waiting game to see the actual impact after the new rules are implemented.
Policy Background and Industry Impact
The Chinese government stated it is willing to work with all countries to maintain global supply chain stability and smooth flow. Given China’s dominant position in the global lithium battery industry chain, the introduction of these controls marks China’s further deepening and improvement of its trade control system in the field of new energy key materials where it has significant industrial advantages, which will inevitably have a profound impact on the layout of global high-end battery supply chains.
As the November 8 effective date of the new regulations approaches, the global new energy industry is closely watching the implementation details of China’s export control policies and their actual impact on international supply chains.
