With effect from 8 November 2025, China has implemented export restrictions on lithium battery components and associated technologies.
The controls target artificial graphite anode materials, cathode materials such as lithium iron phosphate and ternary cathode precursors, high-end lithium-ion batteries with energy densities greater than or equal to 300 Wh/kg, and associated manufacturing tools and technology.
The export controls cover critical segments of the lithium battery industry chain such as battery cells, battery packs, and core manufacturing equipment.
Here are 2 stocks to watch as China imposes fresh controls on lithium battery materials…
#1 Ather Energy
The stock of Ather Energy is down 4% in trade on 10 October, following the news. Ather Energy is a leading Indian electric two-wheeler manufacturer.
The company is likely to be impacted by China’s export controls on lithium battery materials because a significant part of its lithium-ion battery supply currently comes from Chinese suppliers. The exact impact will be known only later.
The controls could affect availability, costs, and supply stability. However, Ather’s ongoing shift toward Indian partnerships and localisation efforts might help reduce this dependency gradually.
Meanwhile, the company has been performing well. Volumes grew from 109,577 in FY24 to 155,394 in FY25. The company is also emerging as a market leader in South India.
On the back of Ather Rizta’s success, Ather Energy is scaling its distribution rapidly in non-south markets and taking its products to all parts of the country.
Moving ahead, the company is expanding rapidly, as the current manufacturing capacity is being used up quickly. Ather Energy has kick-started work on a new factory in Maharashtra.
This factory and the associated supply chain will ensure facilities that are future-ready to build new scooter and motorcycle products, many of which will be built on the EL and Zenith platforms being developed by Ather’s teams.
The industry too is set to grow rapidly. By FY31, an estimated 70–75% of scooters will be electric. The company’s expansion is well-positioned to capitalise on this growth.
How Shares of Ather Energy have Performed
In the past five days, Ather Energy shares have moved higher to Rs 598 from Rs 592. In the last one month, the share price has gained 10%.
The stock touched its 52-week high of Rs 678.5 on 8 October 2025 and its 52-week low of Rs 287.3 on 7 May 2025.
Ather Energy Share Price – 1 Month
#2 Ola Electric Mobility
This is another stock that is down following the decision by China to impose export controls on lithium battery materials. Ola Electric Mobility is a top Indian electric two-wheeler manufacturer.
The company does depend on China for lithium battery materials, particularly in its current supply chain. The reliance is primarily for critical raw materials.
However, in a recent interview with Moneycontrol, founder and CEO Bhavish Aggarwal stated that while the company continues to engage with China, they would also source from other countries.
The Ola Gigafactory became operational with production starting in Q2 of 2025 (July-September quarter), and the first products with the new 4,680 lithium-ion cells were delivered to customers. The factory has a production capacity initially of 1 GWh, expandable to 20 GWh, and is India’s first lithium-ion cell manufacturing facility.
Ola Electric Mobility also became the first two-wheeler EV manufacturer to receive government certification for its in-house developed rare earth-free ferrite motor. This marks a breakthrough milestone that eliminates reliance on imported rare-earth motors with permanent magnets.
Future growth will depend on successful execution of its ambitious expansion plans, consistent product quality improvements, and ability to leverage technological advances in batteries and electric mobility.
However, execution risks remain due to ongoing customer service challenges and stiff competition from established incumbents and new entrants in the EV sector.
How Shares of Ola Electric Mobility have Performed
In the past five days, Ola Electric shares have moved lower from Rs 54 to Rs 50. In the last one month, the share price has lost 15%. In the last one year, the shares have lost 45%.
The stock touched its 52-week high of Rs 102.5 on 4 December 2024 and its 52-week low of Rs 39.58 on 14 July 2025.
Ola Electric Mobility Share Price – 1 Month
Conclusion
China dominates global production and processing of critical battery materials and rare earth elements essential for EV batteries and advanced technology manufacturing.
This can disrupt India’s supply of high-performance lithium batteries and raw materials, leading to increased costs and potential shortages in the short to medium term.
To know what’s moving the Indian stock markets today, check out the most recent share market updates here.
Investors should evaluate the company’s fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.
Happy investing.
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