Here's where the U.S. is behind China on battery technology
Analysts suggest that current U.S. funding levels are insufficient to challenge China's dominant position in the global battery supply chain. Despite recent Department of Energy grants, experts argue that China's multi-decade head start in mineral refining and manufacturing remains a significant hurdle for U.S. competitiveness.
Why it matters
The battery supply chain is critical for the future of electric vehicles and energy storage, making this a key issue for U.S. industrial policy.
The Trump administration has been trying to build up the U.S. battery supply chain and reduce its reliance on China. But the funding it has set aside for the effort is small compared with what would be needed to substantially loosen China's grip on the industry , according to analysts and executives who spoke with CNBC.
The Department of Energy awarded $500 million this August to seven companies related to battery minerals or materials, manufacturing or recycling. It is part of a much larger push by the administration to secure critical minerals and other materials. It also follows the cancellation of many Biden-era policies that supported battery manufacturing and funding for electric vehicles — by far the largest market globally for battery tech.
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