U.S. battery sector faces continued reliance on Chinese raw materials

The United States faces ongoing challenges in reducing its reliance on China for critical battery raw materials, despite expanding domestic battery cell manufacturing capacity. While U.S. production has grown, significant supply chain gaps remain regarding the minerals and processing capabilities required for lithium-ion batteries.

According to the International Energy Agency, China accounted for over 80% of global battery cell production in 2025. China also dominates the production of essential components, including approximately 85% of active cathode materials and over 90% of active anode materials. The country is also a leading producer of lithium iron phosphate (LFP) batteries.

Specific vulnerabilities include a total reliance on imported natural graphite for battery anodes. Although the U.S. Department of Energy has allocated funds to address these supply chain issues, much of the material used in domestic manufacturing still relies on foreign processing or imports.