China's commerce ministry has proposed export restrictions on some technology used to make battery components and process critical minerals lithium and gallium, a document issued on Thursday showed.

China plans to tighten export restrictions on certain technology used to make battery components and the processing of two crucial metals amid rising trade tensions globally.

Beijing is planning to curb the export of technology used to extract minerals critical for the growth of the global electric vehicle (EV) industry, as a tech rivalry with Washington escalates ahead of the inauguration of US President-elect Donald Trump later this month.

China hopes it's found its leverage in the tech war with Washington. The country holds a dominant position in the processing of critical minerals like gallium and lithium. Chinese companies like battery giant CATL have also emerged as key suppliers to automakers around the world.

China's Ministry of Commerce is taking comment on a plan that would extend export restrictions to technology tied to the production of electric vehicle