US To Ban Pentagon From Buying Batteries From China's CATL, BYD

U.S. lawmakers have banned the Defense Department from buying batteries produced by China's biggest manufacturers. "The rule implemented as part of the latest National Defense Authorization Act that passed on Dec. 22 will prevent procuring batteries from Contemporary Amperex Technology Co. Ltd., BYD Co. and four other Chinese companies beginning in October 2027," reports Bloomberg. From the report: The measure doesn't extend to commercial purchases by companies such as Ford, which is licensing technology from CATL to build electric-vehicle batteries in Michigan. Tesla also sources some of its battery cells from BYD, which became the new top-selling EV maker globally in the fourth quarter. The four other manufacturers whose batteries will be banned are Envision Energy Ltd., EVE Energy Co., Gotion High Tech Co. and Hithium Energy Storage Technology Co.

The decision still requires Pentagon officials to more clearly define the reach of the new rule. It adds to previous provisions outlined by the NDAA that decoupled the Defense Department's supply chain from China, including restrictions on use of Chinese semiconductors. While the Defense Department bans apply strictly to defense procurement, industries and lawmakers closely follow the rules as a guide for what materials, products and companies to trust in their own course of business.

Wait a second...

[Gravis Zero]

Isn't this the same group calling Chinese batteries a security threat also the same group of people that wanted to give China the "Most Favored Nation" status in the mid-90s?

Re:Wait a second...

[pezpunk]

The reason the military wants to only use only US-based suppliers whenever possible is because during an actual conflict, a foreign supply could be instantly cut off. It's security in the sense that their logistics operations will still function in wartime, not security in the sense that the Chinese might be spying on them.

Re:Wait a second...

[thegarbz]

Isn't this the same group calling Chinese batteries a security threat also the same group of people that wanted to give China the "Most Favored Nation" status in the mid-90s?

Yes and? The only stupid thing to do would be to not change your mind given updated information in this ever dynamic world. China was deserving of its Most Favoured Nation title in the 90s. It's deserving of the title "Security Risk" now.

Re: Wait a second...

[dbialac]

Which we brought about.

Nothing new

[alvian]

Iâ(TM)ve worked on few projects partly funded by the US federal government and this kind of clauses are common. You have to use US manufactured parts and it has nothing to do with quality. Itâ(TM)s more to do with making sure the US based companies are benefiting from the tax payer funded projects. Sounds good in theory but in most cases imported parts are just as good and costs less.

Re: Nothing new

[dbialac]

Which is great until a global war breaks out. Anybody seen a news paper lately?

Re:Nothing new

[arglebargle_xiv]

Given that BYD is the world's largest EV maker and largest, or one of the largest, battery manufacturers, and make good-quality decent-priced products, this seems like a great way of cutting off your nose to spite your face. It smells a lot more of pork barrelling than any actual problem - is there a Tesla battery factory in the constituency of one of the politicians involved in the decision?

Re:

[AmiMoJo]

Not just good quality products. BYD and especially CATL make the best automotive batteries in the world, bar none. Better than Panasonic, better than the Korean manufacturers, better than everyone. What's more, they are very attractively priced.

We either need to accept that we are going to buy a lot of Chinese batteries, or put some serious effort into improving our own battery technology.

Re:

[GooberPyle]

There are a bunch of battery plants being built in the USA, but they won't be delivering products until 2025. Currently batteries made outside of China use NMC; which are the ones that catch fire. LFP batteries don't flame out and are made in China. Over the next year or two that means the USA military will be buying inferior batteries that run the risk of fire. The ban fails to take this into consideration and is not good for defense capabilities.

Great!

[Chas]

So the US will only capture the non-military market, which is a micro-fractional part of available capacity.

Everything else will have Chinese crap being forcibly capture by order of insane, governmental regulations.

Then, down the road, they;ll lobby to remove that restriction...

Re:

[pezpunk]

Chinese batteries are very good, actually. Btu don't let facts get in the way oof your racist jingoism.

Trade buys CCP their armed forces.

[couchslug]

Giving money to an enemy society is highly questionable.
(InB4 ChiCom shillrage.)

The trade deficit between the CCP (to whom China belongs) and the US already more than pays for their entire armed force the US then spends trillions to contain.

Stop buying any products with Chinese batteries

[WindBourne]

DoD needs to stop buying any products with Chinese batteries. We MUST re-develop our manufacturing and source lines.