China has imposed export controls on the supply of some critical materials, including CdTe
It has made it mandatory for any company wishing to export these materials to seek a license from the government
The decision follows the US imposing an additional 10% tariff on all imports to the country from China
The Chinese Ministry of Commerce (MOFCOM) and General Administration of Customs (GAC) have announced export controls on several critical materials including tellurium, a raw material required for the production of cadmium telluride (CdTe) thin-film solar cells.
The other metals in the list are tungsten, bismuth, molybdenum, and indium-related materials, including metallic tellurium (HS code: 2804500001) among other tellurium-based compounds.
Restrictions cover cadmium telluride (CdTe,HS code: 2842902000、3818009021), cadmium zinc telluride (CdZnTe, HS code:2842909025、3818009021), and cadmium mercury telluride (CdHgTe, HS code:2852100010、3818009021) under specific customs codes, according to the ministry’s notification.
Chinese companies that wish to export any of these items will need to apply for a license from the State Council’s commerce department. This order came into force on February 4, 2025, the day the ministry made the announcement.
While the Chinese ministry did not share any specifics, the ruling came soon after the new US government under President Donald Trump announced an additional 10% tariff on all Chinese imports into the US on February 1, 2025.
Back in December 2024, China had also banned exports of gallium, germanium and antimony to the US. These materials have widespread use in defense and semiconductor industries, among others.
The silver-white metalloid tellurium, represented by the symbol Te, is the primary requirement for thin-film solar cells in combination with cadmium (Cd). According to the US Department of Energy (DOE), CdTe solar cells are the 2nd most common PV technology after crystalline silicon a large supply of which also comes from China. CdTe represented 21% of the US market and 4% of the global market in 2022.
In its attempt to move away from the China-dominated silicon supply for solar cells, the US has been focusing on CdTe of late. In August 2022, it set up a CdTe Accelerator Consortium (CTAC) to accelerate the development of CdTe cells with an efficiency of over 24% and module costs below $0.20/W by 2025. It comprises the largest CdTe solar panel manufacturer in the US First Solar as one of the members (see US Laser Focused On Silicon Free PV Technology).
In June 2024, Canada-based CdTe semiconductor material supplier 5N Plus said it will increase its supply to First Solar from its production facilities in Canada and Germany.
Following the MOFCOM ruling, the China Photovoltaic Industry Association (CPIA) noted that CdTe is a critical material for thin-film solar cells, and the new export controls could significantly impact global CdTe thin-film photovoltaic manufacturers.