US legislators have passed a law prohibiting the Defense Department from purchasing batteries from China’s leading manufacturers.
This move is part of broader efforts in Washington to reduce the Pentagon‘s reliance on Chinese supply chains.
Enacted under the recent National Defense Authorization Act, passed on December 22, this policy will stop the purchase of batteries from companies like Contemporary Amperex Technology Co. Ltd., BYD Co., and four additional Chinese firms from October 2027.
This restriction, however, does not apply to commercial transactions by entities such as Ford Motor Co., which has a licensing agreement with CATL for electric vehicle battery production in Michigan.
Tesla Inc. also obtains some battery cells from BYD, which has recently become the world’s top electric vehicle seller.
The other four Chinese companies affected by this ban are Envision Energy Ltd., EVE Energy Co., Gotion High Tech Co., and Hithium Energy Storage Technology Co. The Pentagon is still in the process of defining the specific scope of this new rule.
This measure builds upon earlier directives in the NDAA that aimed to separate the Defense Department’s supply chain from China, including limitations on Chinese semiconductor usage.
Although these prohibitions are specific to defense acquisitions, they are often used as a reference by various industries and lawmakers for determining reliable materials, products, and companies for their business operations.
