US To Ban Pentagon From Buying Batteries From China's CATL, BYD

U.S. lawmakers have banned the Defense Department from buying batteries produced by China's biggest manufacturers. "The rule implemented as part of the latest National Defense Authorization Act that passed on Dec. 22 will prevent procuring batteries from Contemporary Amperex Technology Co. Ltd., BYD Co. and four other Chinese companies beginning in October 2027," reports Bloomberg. From the report: The measure doesn't extend to commercial purchases by companies such as Ford, which is licensing technology from CATL to build electric-vehicle batteries in Michigan. Tesla also sources some of its battery cells from BYD, which became the new top-selling EV maker globally in the fourth quarter. The four other manufacturers whose batteries will be banned are Envision Energy Ltd., EVE Energy Co., Gotion High Tech Co. and Hithium Energy Storage Technology Co. The decision still requires Pentagon officials to more clearly define the reach of the new rule. It adds to previous provisions outlined by the NDAA that decoupled the Defense Department's supply chain from China, including restrictions on use of Chinese semiconductors. While the Defense Department bans apply strictly to defense procurement, industries and lawmakers closely follow the rules as a guide for what materials, products and companies to trust in their own course of business.

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