American technology companies and the Department of War are reportedly struggling with a similar Chinese ‘problem’. It’s the growing reliance on China for large-scale lithium-ion batteries needed to power both artificial intelligence (AI) development and modern weaponry.As tech majors build massive data centres to compete in the global AI race, experts have warned that they face a significant strategic disadvantage due to their dependency on Chinese batteries. Dan Wang, an expert at Stanford’s Hoover Institution, told the New York Times that “China is leading in almost every industrial component” of the battery sector and “they’re ahead, both technologically and in terms of scale,” highlighting the strategic importance of battery independence for national security.Similarly, military officials at the Pentagon are sounding the same battery warnings, but for different reasons. Military strategists, after observing how modern warfare in Ukraine is being shaped by battery-dependent technology, have claimed that armed forces will need millions of batteries to power drones, lasers and several other weapons in the coming days, many of which come from China, the NYT report noted. According to defence analytics company Govini, US military forces depend on Chinese supply chains for approximately 6,000 different battery components used in weapons programmes, the report added.In a recent gathering of top defence and industry officials in California, Govini CEO Tara Murphy Dougherty said: “The reality is very stark. There are foreign parts in 100% of our weapon systems and military platforms.”
How the US became so dependent on Chinese batteries
China’s control over battery production has long posed challenges for sectors such as automotive manufacturing. However, the report claims that the US is increasingly recognising this gap as a threat to national security.China recognises the strategic value of these batteries. In October, amid escalating trade tensions with the US, China hinted at restricting exports of certain advanced lithium-ion technologies, including key components such as graphite anodes and cathodes.The current US government also faces a dilemma in this area. Upon taking office, President Donald Trump’s administration initially paused billions of dollars in federal grants allocated during the Biden era for battery manufacturing. This decision grouped batteries with electric vehicles, solar farms, wind turbines, and other clean energy technologies that the administration sought to place less emphasis on. Donald Trump has also criticised electric cars, calling them a “scam”.However, the Trump administration has recently recognised that battery technology is essential to priorities such as AI and defence. In interviews, over a dozen people from the battery industry, lobbying firms, military sectors, and those with connections to the administration said the White House has shown increasing interest in building a domestic battery industry separate from China.
How the US is trying to solve this Chinese battery problem
In recent weeks, the White House has held crucial meetings on the battery supply chain, the report claimed, citing three people familiar with the discussions. The National Energy Dominance Council, which President Trump created to manage energy policy, has been meeting with battery companies. The report noted that the Energy Department has quietly approved many of the Biden administration’s battery manufacturer grants. The department also recently announced up to $500 million for battery materials and recycling projects, demonstrating active steps to bolster domestic capacity and reduce reliance on Chinese supply chains.The US government has begun investing in companies that make battery components or extract critical minerals, including Eos, which is developing new battery technology. As part of a trade agreement, officials encouraged Japan to commit billions of dollars to battery manufacturing in the United States. Additionally, the ‘National Defense Authorization Act,’ which passed this month, includes Pentagon restrictions on buying batteries from ‘foreign entities of concern,’ mainly China, emphasising the legislative push to secure supply chains and address strategic vulnerabilities.In a statement to the NYT, Samm Gillard, executive director and co-founder of the Battery Advocacy for Technology Transformation Coalition, a trade group, said that the administration is saying “we don’t like electric vehicles, but we do need batteries for drones and data centres and AI. They’re recognising that China’s stranglehold on the battery supply chain is undermining our national security.”
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