China’s battery stocks plunged after the government imposed export controls on key lithium battery materials and technology, strengthening its grip over the EV supply chain amid rising U.S. tensions.
The new rules, taking effect November 8, require export permits for lithium-ion batteries, cathode and graphite anode materials, and related know-how. Major firms CATL, Tianqi Lithium, EVE Energy, and BYD all slid between 2% and 11%, dragging down the New Energy Vehicles Index by 6%.
Analysts warned the move could slow foreign access to Chinese inputs, though Zaoshang Securities said it was unlikely to lead to an outright ban. The announcement coincided with tighter EV tax exemption rules, adding to investor anxiety.
