Here's where the U.S. is behind China on battery technology

Key Points:

• The Trump administration has allocated $500 million through the Department of Energy to support U.S. battery supply chain development, but analysts say this funding is insufficient to significantly reduce China's dominance in the industry.
• China controls major segments of the battery supply chain, including mineral refining, cathode and anode material production, and battery cell manufacturing, posing a substantial challenge for U.S. competitiveness.
• Several U.S. companies funded by the DOE are focusing on innovative technologies to bypass China's processing dominance, such as Lilac Solutions’ lithium extraction method that avoids traditional Chinese-controlled refining steps.
• Despite these efforts, the Trump administration has rolled back many Biden-era policies supporting electric vehicle (EV) manufacturing and federal tax credits, leading to nearly $24 billion in canceled battery projects since 2025.
• While China’s EV market is rapidly expanding, accounting for 65% of new car sales in July 2026, U.S. EV adoption remains lower at about 24%, raising concerns about the U.S. automotive industry's global competitiveness.