Why It Matters That China Controls the World’s Lithium-Ion Battery Supply

When it comes to the advancement of technology, we think of incredible innovations in everything from artificial intelligence and robotics to wireless communication and laser surgery. Innovation is an iterative process—tech is continuously evolving and providing new applications, with fully functional 3D-printed organs being revolutionary to the field of medicine or facial recognition software helping law enforcement apprehend criminals. Tech like electric vehicles (EVs) has not only become publicly desirable on a wide scale but has also proved to be environmentally friendly. Whether it's an EV with an improved chassis or a smartphone with a higher-megapixel camera, these items require a battery—the often-overshadowed tech powering them. 

Like most iterative technology, a battery from today is almost-certainly superior to yesterday’s counterpart in performance, manufacturing, or some other facet. Your iPhone 15 and 2024 Subaru Solterra both use lithium-ion batteries. The US (and all other countries) relies heavily on imports of these batteries from China, which dominates the global supply. Each year, hundreds of millions of lithium-ion batteries are imported, with only mere fractions coming from trade partners other than China. Even American companies manufacturing batteries stateside are still reliant on the Chinese for components. 

China has invested billions to control global mines, playing keep away with lithium and other minerals valuable for their manufacturing applications. Suffice it to say, the US isn’t a fan of its reliance on China, and it isn’t just a commercial consideration—there are national security risks involved, too, when the US is reliant on another nation for a key technology. Naturally, the issue is exacerbated by our country’s ever-growing demand for lithium to power phones, cars, and computers—as well as important health and safety-related devices like pacemakers and carbon-monoxide detectors. If the supply cannot meet the demand, EVs will become even more expensive than they already are.

There are several reasons that China’s domination of the global battery market is a problem. 

1. Factory conditions in China are notoriously poor, with long hours and low wages. As a result, there are indirect ethical implications to remaining complacent with this import dynamic. 

2. While it’s not a prudent decision to put all your eggs in one basket in general, the issue is compounded by the fact that the US and Chinese governments have a mutually wary relationship and are only ‘allies’ in the loosest sense of the word. Should something occur that disrupts trade, the US would face a serious detriment to its technology market. 

3. China, while contributing more than double the total emissions as the US, is gatekeeping this eco-friendly alternative to gas-powered vehicles. Thus, it is hindering US attempts to lower emissions through alternate sources of energy—efforts that can only go so far while the US remains beholden to China for lithium. 

4. There are national security concerns for the US and its allies. A potential shortage or blockade of lithium-ion batteries would restrict NATO’s use of fighter jets, drones, missiles, and even radios.

One of the best things the US can do is support lithium refining stateside and work with friendly countries in North and South America. There are substantial lithium deposits found in countries like Argentina, Brazil, and Chile, and Canada has established lithium mining operations in Manitoba and Quebec. While this wouldn’t meet the entire demand, a bolstered emphasis on lithium production would help offset some of the reliance on China, putting the US in a stronger position.