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The US wants a stronger battery supply chain. China has a decades-long head start
Baton Rouge Business Report • • business
Key Points:
- The Trump administration is investing $500 million through the Department of Energy to support U.S. companies developing battery minerals, materials, manufacturing, and recycling technologies aimed at reducing reliance on China.
- Despite this funding, analysts and industry executives say the amount is small compared to what is needed to significantly challenge China's dominance in the battery supply chain.
- China currently controls a vast majority of the battery supply chain, processing about 95% of spodumene and producing around 80-90% of key battery materials and cells globally.
- Experts estimate that building a U.S. supply chain comparable to China's dominance could take decades and require tens or hundreds of billions of dollars in investment.
- Efforts to expand U.S. battery capacity face setbacks due to the cancellation of Biden-era EV and battery policies and nearly $24 billion in battery projects being canceled since early 2025.
