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China challenges US in 2025: Lithium and gallium export controls threaten global tech market

Written by Bruno Teles
Published 04/01/2025 às 11:30
China challenges US in 2025: Lithium and gallium export controls threaten global tech market
The tit-for-tat between China and the US is like a strategic exchange of blows: each country reacts to the other’s move to maintain its advantage. While one country limits technology exports, the other responds with restrictions on essential materials, leaving the global market in tension.

With plans to restrict exports of lithium and gallium, essential for electric batteries and high-tech chips, China is increasing pressure on the global market, while the United States faces uncertainty under the new administration of Donald Trump.

The trade disputes between China and the United States seem far from over. With 2025 just around the corner, the Asian giant is strengthening its position in strategic sectors, and export controls on battery technologies such as lithium and gallium promise to be the next chapter in this rivalry. But what does this mean for the global market and the future of technology? Let’s explore.

Escalating trade tensions between China and the US

The trade disputes between these two powers are old, but in the last years, the competition has become even more heated. While the United States has restricted exports of artificial intelligence chips, China has retaliated by limiting critical materials such as gallium and germanium. This exchange of “economic blows” has almost become a strategic dance, with each move leaving its mark on the global market.

Did you know that lithium and gallium, two key elements in modern technology, are at the center of this dispute? Lithium is essential for batteries in electric cars and electronic devices, while gallium is an indispensable metal for high-tech chips. It is as if the two countries are playing a chess game where each piece has the potential to change the future of innovation.

China's New Strategy: Export Control on Batteries

China is the world leader in the production and refining of lithium, an essential element for batteries in electric cars, smartphones and laptops. Controlling much of the supply chain, the country dominates everything from extraction to processing, making it a key player in the global market for sustainable technology.
China is the world leader in the production and refining of lithium, an essential element for batteries in electric cars, smartphones and laptops. Controlling much of the supply chain, the country dominates everything from extraction to processing, making it a key player in the global market for sustainable technology.

China, the world leader in electric battery production, has decided it is time to use its market power strategically. With plans to include materials such as lithium and gallium on its list of controlled exports, Beijing wants to “strengthen the management of technology import and export.”

But what does this mean for Western companies? Battery makers that rely on Chinese materials or technologies could face major challenges. Imagine putting together a jigsaw puzzle without key pieces – that’s how some companies might feel. This move puts pressure on global markets and forces Western countries to rethink their production strategies.

The impact of the US elections on the global trade scenario

With Donald Trump once again assuming the presidency of the United States, the trade game may change. Trump is known for his tough stance on China, But will he maintain this position or adopt a more conciliatory tone?

The global outlook depends heavily on this relationship. If tensions escalate, it is likely that new sanctions and restrictive measures will be implemented, creating a domino effect on international trade.

Why Lithium and Gallium Are Essential for the Future

Lithium is the backbone of modern batteries. Without it, our smartphones, laptops and electric cars simply wouldn’t work. Gallium, a lesser-known metal, is essential for the production of chips used in satellites and high-tech communications.

Think of lithium as the “fuel” of the future and gallium as the “engine” that drives technology forward. That’s exactly why these materials are so hotly contested in the geopolitical arena.

With China tightening its grip on lithium and gallium, and the United States watching every move, 2025 promises to be a defining year for global technology. The world is moving into an era where strategic resources dictate the rules of the game.

Will this rivalry will drive new innovations Or will it create insurmountable barriers? Only time will tell. But one thing is certain: lithium and gallium will continue to be the protagonists of this story. After all, in such a competitive power game, every element counts.

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Bruno Teles

I talk about technology, innovation, oil and gas. I update daily about opportunities in the Brazilian market. With more than 3.000 articles published in CPG. Agenda suggestion? Send it to brunotelesredator@gmail.com

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