The Trump administration is trying to reduce the U.S. battery industry’s reliance on China, but catching up will take far more than government funding. The Energy Department awarded $500 million in August to seven companies working on battery minerals, materials, manufacturing and recycling, as part of two $3 billion programs created under the Biden-era infrastructure law.
China still dominates key parts of the supply chain. It handles about 95% of spodumene processing, produces roughly 85% of global EV cathode material and more than 90% of anode material, and makes about 80% of battery cells, according to the International Energy Agency. U.S. companies are targeting some of these gaps with domestic silicon anodes and new lithium extraction technology.
The bigger challenge is scale. China has spent decades building manufacturing capacity and supply chains, while nearly $24 billion in announced U.S. battery projects have been canceled since January 2025, according to Atlas Public Policy. At the same time, federal support for EVs and batteries has been cut back, even as China expands its lead in EVs and energy storage.
U.S. companies still see room to build domestic production of lithium, cathode materials and battery cells over the next decade. But for now, Washington faces a long road to close a gap that has taken China decades to build.
