The U.S. Department of Energy has recently provided grants to several small battery technology companies, intending to reduce reliance on China’s battery supply chain. However, the reality is that China has built up decades of advantages in the battery sector, and it will be difficult for the U.S. to catch up within a few years.

This policy development may affect the global battery industry’s supply-chain layout. In the short term, the U.S. still lacks sufficient domestic battery production capacity and continues to rely on imports, while China’s clear cost advantages in processing raw materials and manufacturing batteries are evident. Rising international oil prices (WTI crude oil at $93.83 per barrel, up 2.57% on the day) increase logistics and raw-material costs, further highlighting the U.S. domestic manufacturing cost disadvantage.

Judging by market reactions, investors may be paying attention to progress in breakthroughs in U.S. battery technology, but in the short term it will be difficult to see any substantial replacement. China’s battery companies, leveraging scale advantages and technological accumulation, are still expected to dominate the global market. After small U.S. firms receive funding, whether they can quickly commercialize the technology remains to be confirmed.

Next, readers should focus on the specific progress of projects funded by the U.S. Department of Energy and on the overseas expansion strategies of Chinese battery companies. If the U.S. achieves breakthroughs in next-generation technologies such as solid-state batteries, or if China’s export policies undergo major changes, the current landscape could be altered.

Risk warning: This article is for informational interpretation only and does not constitute investment advice.