Pentagon and A.I. firms rely on China for batteries, prompting U.S. concern

Officials in Northern Virginia’s Data Center Alley and at the Pentagon say U.S. artificial‑intelligence operations and military systems are increasingly dependent on batteries sourced from China. Experts and industry data cited in the report say China dominates key steps in the lithium‑ion supply chain: the International Energy Agency estimated that in 2024 China made 99 percent of the world’s LFP cells and more than 90 percent of main components.

Govini, a defense software firm, said U.S. forces rely on Chinese supply chains for some 6,000 individual battery components. Dan Wang of Stanford’s Hoover Institution said China is “leading in almost every industrial component,” and the article notes China threatened on Oct. 9 to limit exports of advanced lithium‑ion technologies.

The White House and agencies have shifted their posture, the article reports. The administration initially froze many Biden‑era battery grants but has since held high‑level meetings on the supply chain, allowed many grants to proceed, announced up to $500 million for battery materials and recycling, and begun investing in companies such as Eos.

The National Defense Authorization Act passed this month includes restrictions on Pentagon purchases from “foreign entities of concern.” A White House spokeswoman said the president was “deploying all aspects of the government” to boost domestic battery production, and trade groups said the administration now frames battery policy as a national‑security issue.

Key Topics

Tech, Lfp Batteries, China, Pentagon, Data Centers, Battery Supply Chain