U.S. Pursues Multi-Layered Strategy to Reduce Dependence on Chinese Batteries

Investment in Recycling & Alternatives

The U.S. is boosting investment in battery recycling and alternative technologies. Research and development of alternatives like lithium iron phosphate are being enhanced, and recycling efforts aim to recover lithium, nickel, cobalt, and copper.

• Enhancing R&D for alternative battery technologies like lithium iron phosphate (LFP)
• Establishing recovery technology for lithium, nickel, cobalt, copper through recycling

Shifting from China-Centric Processing

The U.S. is strengthening domestic and allied refining and processing capabilities to move away from China-centric processing.

Strengthening Friend-Shoring Strategy

The U.S. is enhancing its friend-shoring strategy by diversifying battery supply chains in collaboration with allies like South Korea.

China's Supply Chain Dominance & Risks

China dominates nearly every stage of the battery supply chain, leading to security risks vulnerable to geopolitical tensions and trade disputes.

• China dominates nearly every stage of the battery supply chain, leading to global market dominance
• Vulnerable to geopolitical tensions and trade disputes

Building Self-Reliance & Policy Uncertainty

The U.S. plans to contribute to long-term supply chain self-reliance through expanded recycling infrastructure and collaboration with allies. However, policy changes like the IRA may cause confusion in corporate investment decisions.

• Contributing to supply chain self-reliance through expanded recycling infrastructure and ally cooperation
• Potential confusion in corporate investment decisions due to policy changes like the IRA