The United States is squandering its best opportunity to compete in the global battery race. China jumped to a commanding lead in the last decade, controlling the supply chain for lithium-ion batteries, which power everything from cell phones, to military drones, to electric vehicles (EVs). By passing ambitious legislation under U.S. President Joe Biden, Washington has begun investing heavily in its domestic battery industry.
But even significant funding won’t get the job done if it isn’t directed at the right target: securing U.S. supremacy in next-generation technology, solid-state batteries. U.S. companies and research institutions are on the cusp of commercializing next-generation batteries that far surpass the performance of today’s lithium-ion batteries in safety, longevity, and energy density. And with scaled-up production, these batteries would eliminate dependence on Chinese-produced graphite.
The United States is squandering its best opportunity to compete in the global battery race. China jumped to a commanding lead in the last decade, controlling the supply chain for lithium-ion batteries, which power everything from cell phones, to military drones, to electric vehicles (EVs). By passing ambitious legislation under U.S. President Joe Biden, Washington has begun investing heavily in its domestic battery industry.
But even significant funding won’t get the job done if it isn’t directed at the right target: securing U.S. supremacy in next-generation technology, solid-state batteries. U.S. companies and research institutions are on the cusp of commercializing next-generation batteries that far surpass the performance of today’s lithium-ion batteries in safety, longevity, and energy density. And with scaled-up production, these batteries would eliminate dependence on Chinese-produced graphite.
Yet a majority of the U.S. funding spree has so far supported current-generation technology, lithium-ion batteries—an expensive and likely futile attempt to wrest market share from China. Of the $30 billion that the U.S. government has committed to battery investments in the last two years through grants, loan guarantees, and tax incentives, more than 90 percent supports lithium-ion batteries. To be sure, it is prudent for the United States to secure a limited supply of lithium-ion batteries, produced either domestically or by trusted partners abroad, to hedge against the risk of China cutting off exports of batteries or their components.
But the United States cannot build a globally competitive battery industry that does not require unending subsidies if it relies only on today’s technology.
It’s time for a decisive shift in Washington’s strategy. Although policymakers have........