China introduced new restrictions on the export of core technologies related to electric vehicle (EV) battery production on July 15, 2025.1 The new rules, issued by the Ministry of Commerce and the Ministry of Science and Technology, require export licenses for specific technologies used in producing battery cathode materials and refining nonferrous metals, as well as for certain lithium extraction technologies.2
China’s new export rules will likely increase costs and slow down the growth of India’s EV market. Since Indian manufacturers heavily rely on Chinese technology for producing affordable batteries, the restrictions create a significant hurdle. Indian companies may face delays in technology transfer, forcing them to seek alternative suppliers or develop indigenous technology. This could potentially delay project timelines, increase vehicle prices, and hinder India’s goal of widespread EV adoption.
In the long run, China’s export restrictions could act as a catalyst for India. It will likely accelerate the development of a self-reliant domestic EV battery ecosystem. India will be pushed to fast-track its own R&D, invest in indigenous technology, and diversify its supply chains, reducing its long-term dependence on a single country for critical components.
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