American media: In an attempt to reduce reliance on the Chinese supply chain, the Trump administration is pushing to subsidize the battery industry.
The U.S. government is quietly adjusting its energy policy to address China's dominance in the battery sector. According to a report in the New York Times on the 23rd, the Trump administration froze federal funding of billions of dollars for battery manufacturing when it took office, but is now pushing for subsidies to the battery industry behind the scenes, trying to reduce dependence on the Chinese supply chain. The report states that the U.S. government is beginning to realize the importance of battery technology in many aspects, including artificial intelligence and national defense. More than a dozen battery industry executives, lobbyists, military experts, and other individuals close to the government have expressed in interviews that the White House's interest in developing a domestic battery industry not reliant on China is increasing. According to three sources, the White House has held high-level meetings on the battery supply chain in recent weeks. The U.S. National Energy Leadership Council has been meeting with battery companies to coordinate energy policies. The Department of Energy has quietly approved multiple grants for battery manufacturers that were initiated during the Biden administration. The department also recently announced it will provide up to $500 million in funding for battery materials and recycling projects. This shift is driven by concerns about China's leading position in battery technology, but catching up in the battery industry is not an easy task for the U.S. Analysts estimate that U.S. manufacturers will need at least five years to produce enough lithium iron phosphate batteries to meet domestic demand, and it will take even longer to establish a supply chain for related components.
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