The recent passage of the National Defense Authorization Act on December 22 has included a provision that prohibits the US Defense Department from buying batteries from major Chinese manufacturers. This regulation, set to go into effect in October 2027, specifically targets six Chinese companies, including CCATL, BYD, Envision Energy, EVE Energy Co., Gotion High Tech Co., and Hithium Energy Storage Technology Co.
It is interesting to note that this rule does not apply to commercial purchases made by companies such as Ford. For example, Ford utilizes technology from CATL to manufacture electric vehicle batteries in Michigan. Similarly, Tesla sources battery cells from BYD, which has become a prominent player in the global electric vehicle market.
The primary concern behind this regulation is unclear, but it is presumed to be related to potential hacking risks. The Defense Department aims to avoid any compromise or instability in battery-powered drones that could be used in the event of a conflict with China.
With the decision made, the Pentagon now needs to address the logistical details of implementing this new rule. This development adds to previous regulations outlined in the NDAA that have severed the Defense Department’s supply chain from China, including restrictions on the use of Chinese semiconductors.
While this ban specifically applies to defense-related products, various industries and lawmakers often view these rules as guidance for determining which products, companies, and technologies are deemed trustworthy in their own business endeavors.
The source of the article is from the blog be3.sk