In August, the Department of Energy awarded $500 million to seven companies working in battery minerals, materials, manufacturing and recycling, CNBC reports. Some recipients are developing technologies that could reduce reliance on Chinese processing, including Coreshell Technologies’ silicon-based battery anodes and Lilac Solutions’ technology for extracting lithium directly from brine.
Nonetheless, China maintains a major advantage throughout the battery supply chain, especially in refining and processing. China processes about 95% of spodumene and produces approximately 85% of global cathode active material, more than 90% of anode active material, and about 80% of battery cells; the IEA similarly reports China’s dominant position in these areas.
Experts say building comparable capacity could require decades and tens, if not hundreds, of billions of dollars. The challenge is further complicated by the cancellation of Biden-era EV and battery policies and nearly $24 billion in announced battery projects reportedly being canceled since January 2025.
