China Targets EV Price Wars, Restricts Battery Exports to Dominate Global Market

- China curbs EV price wars, favoring innovation over discounts. - Battery export licenses aim to secure global leadership. On July 16, 2025, Global News Select reported that China’s State Council announced it will crack down on damaging EV price wars while also introducing export restrictions on critical battery technologies. Premier Li Qiang chaired a State Council meeting where officials addressed “irrational competition” in the domestic EV sector, noting this competition has led to intense price wars among manufacturers. The government therefore pledged to reinforce market order, increase price monitoring, and encourage innovation and quality enhancements over deep discounting. Premier Li's comments reflect growing concerns that while aggressive pricing strategies boost sales volumes, they could undermine long-term economic growth objectives. This intervention coincides with the rising global competitiveness of Chinese automakers like BYD, which surpassed Tesla in European EV sales for the first time in April. As a result, this achievement has fueled trade tensions with the United States and the European Union, whose domestic auto industries face pressure from the influx of cost-competitive Chinese EVs. Meanwhile, on July 15, China’s Ministry of Commerce and the Ministry of Science and Technology issued new regulations requiring export licenses for eight critical battery manufacturing technologies. The restricted technologies include production techniques for lithium iron phosphate (LFP) and lithium manganese iron phosphate (LMFP) cathodes, which the industry recognizes as breakthroughs in EV battery cost and performance. Effective immediately, the restrictions cover technology transfers through trade, investment, and partnerships and align with similar measures China previously implemented for rare earths and magnets. Officials stated the export restrictions aim to protect China’s dominant position in EV battery production, secure global competitive advantages, and ensure continued domestic technological advancements. Together, these policies reinforce China's broader push to solidify its leadership in the EV and renewable energy supply chains.