How is China restricting the global lithium supply chain for electric vehicle batteries?

China has begun restricting exports of key equipment used to process lithium, particularly sorbents and filtration equipment essential for extracting lithium from brines. This follows Beijing's proposal for licensing requirements on battery technologies. China dominates over 60% of global lithium processing and holds a 70% market share in solvent production, making this a significant disruption for Western manufacturers. These restrictions come amid escalating trade tensions, affecting ongoing lithium projects globally. Chinese export controls could delay lithium extraction projects, potentially impacting the production of over 14 million EV batteries annually. Western companies are scrambling to develop alternative supply chains, but China's 20-year head start in lithium processing presents a substantial challenge to reducing dependence on Chinese supplies.