China’s Tightening Grip on Lithium Technology
A recent decision by a Chinese company to halt exports of essential lithium processing equipment highlights the initial impact of Beijing’s proposed export controls. The move is already sending ripples through the electric vehicle battery supply chain and prompting a search for alternative technologies.
Jiangsu Jiuwu Hi-Tech, a major producer of filtration equipment known as a sorbent, informed its customers last month that it would no longer export this vital component from February 1st, according to sources with direct knowledge and internal documents. Sorbents play a crucial role in extracting lithium from brines and other solutions, making them indispensable in the battery manufacturing process.

This image shows workers on the production line of lithium-ion batteries for electric vehicles in China.
China currently leads the world in sorbent production, although reliable market data is scarce. The decision by Jiangsu underscores the tangible effects of Beijing’s January proposal to restrict the export of certain battery and lithium technologies. If the proposal is approved, companies will require government licenses for overseas sales.
One executive at another lithium extraction technology firm, who spoke on condition of anonymity, confirmed that Jiangsu and Sunresin New Materials, another significant sorbent producer, are currently in discussions with the government regarding the proposal.
While the Chinese government has not yet publicly discussed the proposal since its release, many within the industry view it with concern. A China-based international lawyer with clients in the clean energy sector noted a “chilling effect” on export activity.
Building Alternative Supply Lines
In the immediate term, any disruption in access to Chinese sorbents could significantly affect plans for Western oil producers who are looking to integrate lithium extraction into their operations. Companies like Exxon Mobil have studied the potential use of Chinese processing equipment in their planned lithium operations in Arkansas.
Koch Industries, the primary investor in Arkansas-based lithium developer Standard Lithium, agreed to use sorbents from China’s Xi’an Lanshen New Material Technology in its North American operations in 2023. Facing these potential restrictions, Western companies are now looking to develop their own sources.
Several Western sorbent producers believe they could potentially capture market share, but they lack the market experience of their Chinese counterparts. In addition, their equipment is not yet at a commercial production level.
Brian Menell, CEO of TechMet, which invests in Western mining companies and lithium equipment producers, stated, “We have to completely change the technologies and innovate in production and processing, and we have to do it without being beholden to China, which has a 20-year head start and controls the game.”
Francis Wedin, chairman of Vulcan Energy Resources, which has developed its own sorbent technology for use in Germany, said his company has been inundated with inquiries. “Over the past few weeks we’ve gotten inundated by companies wanting to approach us and buy our sorbent and license the technology,” he said, noting the interested companies included large lithium companies from North and South America.