Trump Administration’s $500 Million Battery Funding Falls Short of China’s Lead, Analysts Say

According to CNBC, the Trump administration is trying to build up the U.S. battery supply chain and reduce reliance on China, but analysts and executives said the funding set aside so far is far too small to materially weaken China’s grip on the industry. The Department of Energy awarded $500 million in August to seven companies tied to battery minerals, materials, manufacturing or recycling, marking the first round of funding under two $3 billion DOE battery technology and materials programs created by the Biden-era Infrastructure Investment and Jobs Act. The article said China holds a majority share of several parts of the battery supply chain, from raw minerals and chemicals to finished products such as electric vehicles and energy storage systems. The International Energy Agency said China’s share of mineral refining has increased since 2020, and it also controls about 85% of the world’s EV battery cathode active material, more than 90% of anode active material and 80% of battery cells. The IEA said weak investment in midstream battery stages in countries like the U.S. poses a growing risk to global supply security. Among the companies receiving DOE money, Coreshell Technologies got $50 million to make battery anodes from domestically sourced silicon, while Lilac Solutions received $100 million for a method of extracting lithium from salt water brine. Lilac Solutions CEO Raef Sully said the global lithium market grew from about 150,000 metric tons in 2015 to 1.5 million metric tons in 2025, and said 95% of spodumene processing happens in China. The article also said nearly $24 billion in announced battery projects have been canceled since January 2025, when Trump took office.