Two U.S. senators have sent a letter to Department of Energy Secretary Jennifer Granholm, asking her to address the urgent need for the United States to secure leadership in next-generation battery technologies and productions amid China’s dominance in the field.
In a letter a dated Nov. 1, Energy Committee Chairman Senator Joe Manchin (D-W.V.) and Senate Intelligence Committee Chairman Senator Mark Warner (D-Va.) said the United States is “10 to 20 years behind Asia in commercialization of battery technology,” particularly China.
The senators said that the demand for lithium-ion batteries is expected to grow more than seven times by 2035, but the United States produced less than 10 percent of batteries while China dominated that market with 70 percent last year.
“Of the five critical minerals required for most lithium-ion batteries, China controls between 60–100 percent of the mining or refining for these minerals,” the letter warned.
The Chinese regime also strengthened its position as it has repeatedly imposed export controls over critical materials needed for the batteries production.
The two Senate chairmen said that in July, Beijing imposed export restrictions on two components in semiconductors production, gallium and germanium; in October, it banned “exports of raw and synthetic graphite, critical to manufacturing battery anodes”; and “today, Beijing China’s ministry of commerce announced new export requirements on rare earth oxides and metal.”
China’s monopoly position in the field causes “substantial defense and economic security vulnerabilities” for the United States as the lithium-ion batteries are used in key areas such as electric vehicles, the power grid, and military equipment, the senators warned.
The letter urged Secretary Granholm that the United States “must become a leader in manufacturing batteries and battery components while securing our supply chains for the materials that make up those components” and “lead in next-generation battery technology and alternative chemistries.”
To reduce U.S. “dependence on adversary-dominated supply chains and capitalizes on innovative domestic battery development,” the senators then asked Secretary Granholm to consider alternative battery technologies development beyond traditional lithium-ion batteries to “ensure a more resilient domestic battery market and foster alternatives to supply chains China currently dominates.”
They also ask the Energy Department to coordinate with the Pentagon “in support procurement of innovative, U.S.-developed energy storage technologies” and with other federal and state agencies to “accelerate reviews for domestic mining and processing facilities to secure our supply chains for next-generation battery manufacturing.”
China’s Dominance in Lithium Supply Chain Presents Threats to US Firms
China’s dominance over the global lithium supply chain poses elevated risks to downstream U.S. companies as Chinese firms keep expanding their footprints in overseas lithium mines.Last year, OneCharge released a report addressing the U.S. role in global lithium battery manufacturing and the risks China presents to the supply chain.
China Firms Expand Battery Production in the United States
In June, Chinese-owned electric vehicle battery maker AESC Group started constructing a battery plant in South Carolina. The 30-gigawatt-hour (GWh) plant, which will cost about $810 million, builds on AESC’s battery manufacturing network.The company also has an operational plant in Tennessee and another facility in Kentucky.
Another Chinese battery maker, Gotion High-Tech, chose Illinois as the site for its new $2 billion lithium battery plant in September. The factory will be built on a sprawling 150-acre site in Manteno, Illinois, and is expected to begin production next year. It will focus on lithium-ion battery cells, battery packs, and energy storage systems integration.
In August, Gotion also announced that it planned to build a $2.36 billion EV battery factory in Michigan.
In September, Ford said it would pause to build a $3.5 billion electric vehicle battery plant project in Michigan as it has faced criticism due to its link to China-based firm Contemporary Amperex Technology Co. Ltd.
