Key Points: On June 22, 2026, the Ministry of Commerce announced and officially implemented the "Export Control Management List (June 22, 2026)," targeting 10 US entities. This export control measure will have almost no direct impact on China's solid-state battery sector, though indirect links via the rare earth supply chain warrant attention. (1) China already imposes export controls on high-end batteries with energy density exceeding 300 Wh/kg (including semi-solid and all-solid states); this latest entity-specific measure is an extension of the existing regulatory framework, not a new restriction targeting the solid-state battery industry. (2) The solid-state battery industry remains in the development phase, with limited export demand.
I. The 10 Listed Entities Have No Direct Business Ties With the Solid-State Battery Sector
Judging by their business profiles, the entities on the list are primarily active in unmanned aerial systems, military radar, aerospace, military vehicles, and maritime services, with no direct business overlap with the R&D, production, or material supply chain of solid-state batteries. Two rare earth companies—MP Materials and USA Rare Earth—focus on upstream rare earth ore mining and processing. While key materials for solid-state batteries (such as oxide solid-state electrolytes) do rely on rare earth elements like zirconium and lanthanum, this represents an indirect upstream raw material linkage, not a direct battery business relationship.
Furthermore, China already imposes export controls on high-end batteries with energy density exceeding 300 Wh/kg (including semi-solid and all-solid states). This entity-specific action is an extension of the existing regulatory framework, rather than a new restriction aimed specifically at the solid-state battery industry.
II. Indirect Impact to Monitor: The Rare Earth Supply Chain
With MP Materials and USA Rare Earth added to the list, Chinese enterprises will be prohibited from exporting dual-use items to these two firms. While the core business of these two companies is processing US-mined rare earth ores into products, and their direct trade with Chinese enterprises is limited, the following knock-on effects deserve vigilance:
Rare earths as an escalating bargaining chip: China is the world’s largest producer and processor of rare earths. Placing US rare earth companies under controls signals a potential further escalation in rare earth supply chain maneuvering. If controls later extend to exports of rare earth processing technologies, equipment, or critical materials, it could indirectly affect raw material procurement costs for domestic solid-state battery enterprises.
Strategic reliance of solid-state batteries on rare earths: The development of oxide solid-state electrolytes depends on rare metals such as zirconium, lanthanum, titanium, and germanium, some of which involve the rare earth supply chain. Currently, China's solid-state battery material system is relatively well-established, limiting the short-term impact, but changes in rare earth export control policies warrant long-term attention.
III. Summary
In the short term, these controls pose no material shock to the industrialisation of solid-state batteries in China—the listed entities have no direct business dealings with the solid-state battery sector, and the R&D, production, and client deliveries of domestic solid-state battery enterprises remain unaffected.
In the long term, attention should be paid to the policy direction of the rare earth supply chain. If the strategic competition between China and the US in the rare earth sector continues to escalate, it may indirectly affect the solid-state battery industry through the transmission of raw material costs. However, the impact of these controls themselves on the solid-state battery industry remains extremely limited.
IV. Appendix: Background on 10 US Companies
The background of these 10 US companies is as follows. Among them, Aveox, Inc., Red Cat Holdings, Inc., Teal Drones, Inc., and Jaia Robotics, Inc. are involved with products or technologies related to solid-state batteries.
1. Aveox, Inc.
Founded in 1992 by power technology expert David Palombo, Aveox is headquartered in Simi Valley, California. The company specializes in the design and manufacture of high power density DC motors, motion controllers, and power conversion systems (PCS), with products widely used in the aerospace, national defense, medical, and industrial sectors. Its core business includes providing customized motor solutions for unmanned aerial vehicles (UAVs), unmanned underwater vehicles (UUVs), electro-optical targeting systems, and laser weapon cooling systems.
2. Red Cat Holdings, Inc.
Red Cat Holdings is a publicly listed firm on Nasdaq (Ticker: RCAT). Its predecessor, Oravest International, was founded in 1984, and it adopted its current name in 2019 following several name changes. The company is a provider of advanced all-domain drone and robotics solutions for the US national defense and security sectors. Its product portfolio covers multi-domain operational platforms across air, land, and sea, with its flagship product being the "Black Widow" small unmanned aerial system.
3. Teal Drones, Inc.
Teal Drones was founded by George Matus in 2014 (some sources say 2016) in Salt Lake City, Utah, when the founder was just 17 years old. In August 2021, the company was acquired by Red Cat Holdings and became its wholly-owned subsidiary. The company primarily engages in the R&D and production of military drones. Its main products include the "Golden Eagle" and "Black Widow" models, and it participated in the US Army's Short Range Reconnaissance (SRR) program. In December 2025, the company was placed on China's countermeasures list under the Anti-Foreign Sanctions Law.
4. IMSAR, LLC
Founded in 2004, IMSAR is a privately held enterprise headquartered in Springville, Utah. The company is a globally leading developer of miniature synthetic aperture radar (SAR) technology, providing high-performance SAR radar systems for manned and unmanned platforms with all-weather imaging, surveillance, and surface search capabilities. Its products can be integrated with electro-optical/infrared (EO/IR) and electronic warfare (EW) payloads, serving clients including the US Department of Defense and the Department of Homeland Security.
5. Jaia Robotics, Inc.
Jaia Robotics was founded in December 2020 and is headquartered in Bristol, Rhode Island. The company focuses on developing miniature, autonomous aquatic surface/submersible robots (JaiaBots) for low-cost, large-scale water data collection. Its multi-sensor configurable products are widely used in marine research, environmental monitoring, and other fields. The company is a privately held enterprise and has completed multiple rounds of financing.
6. Ball Aerospace & Technologies Corp.
Founded in 1956, Ball Aerospace is headquartered in Boulder, Colorado. The company has long provided spacecraft, advanced instruments and sensors, data exploitation systems, and radio frequency solutions for agencies such as the US Department of Defense, NASA, and NOAA. In 2024, the company was acquired by BAE Systems and now operates as the "Space & Mission Systems" business unit under BAE Systems, Inc.
7. Oshkosh Defense, LLC
Oshkosh Defense is the defense business segment of Fortune 500 company Oshkosh Corporation (NYSE: OSK). Oshkosh Corporation boasts over a century of industrial manufacturing history, with approximately 18,500 employees worldwide and annual revenue of $10.7 billion. Oshkosh Defense is a global leader in the design, production, and sustainment of tactical wheeled vehicles and mobility systems, providing advanced military vehicles to the US Department of Defense and allied forces. Its business covers the full product life cycle, from procurement to maintenance, training, and other links.
8. L3Harris Maritime Services, Inc.
L3Harris Maritime Services is a maritime services subsidiary of L3Harris Technologies, headquartered in Norfolk, Virginia. Founded in January 1970, its primary business is ship building and repairing (NAICS Code 336611). With over six decades of experience in the maritime domain, L3Harris has installed thousands of kilometers of subsea cables, hundreds of sensors and mooring systems, and provides subsea structure installation services for military, academic, research, and commercial clients globally. The company is also deeply involved in the R&D and deployment of unmanned surface and underwater vehicles.
9. MP Materials Corp.
Founded in 2017 and headquartered in Las Vegas, Nevada, MP Materials is the largest rare earth material producer in the Western Hemisphere. The company owns and operates the Mountain Pass rare earth mine and processing facilities in California—the only operational, large-scale rare earth ore site in the US. MP Materials is the only enterprise in the US with large-scale rare earth mining and processing capabilities, with a core focus on neodymium-praseodymium (NdPr), a key raw material for permanent magnets. The company is committed to rebuilding a complete US rare earth supply chain, from mining to processing to magnet manufacturing.
10. USA Rare Earth, Inc.
USA Rare Earth (NASDAQ: USAR) is an enterprise dedicated to establishing a vertically integrated, "mine-to-magnet" domestic rare earth supply chain in the US. The company's core asset is the Round Top deposit in Texas, which contains 15 of the 17 rare earth elements, as well as lithium and other critical minerals. The company is building a NdFeB permanent magnet manufacturing plant in the US and establishing domestic rare earth and critical mineral extraction and processing capabilities. Currently, the company is still in an early-stage development phase, continues to incur losses, and is actively advancing the commercial production of the Round Top project.
SMM projects that by 2028, all-solid-state battery shipments will reach 13.5 GWh, and semi-solid-state battery shipments will reach 160 GWh. By 2030, global lithium-ion battery demand is expected to be around 2,800 GWh. Among this, the average annual compound growth rate for lithium-ion battery demand from EVs from 2024 to 2030 is projected at around 11%, for energy storage at around 27%, and for consumer electronics at around 10%. In 2025, the global solid-state battery penetration rate is around 0.1%, and the all-solid-state battery penetration rate is expected to reach approximately 4% by 2030, potentially approaching 10% by 2035.
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