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According to reports from Bloomberg and Singapore’s Lianhe Zaobao on January 20, U.S. Congress has prohibited the Pentagon from purchasing batteries produced by six Chinese companies, including and BYD. The reports suggest that this move is part of the U.S. Congress’s efforts to further decouple the Pentagon’s supply chain from China.

The regulation, reportedly part of the 2024 National Defense Authorization Act passed on December 22, 2023, prohibits the U.S. Department of Defense from procuring batteries from CATL, BYD, and other four Chinese companies starting from October 2027.

It is emphasized in the reports that this measure will not affect commercial purchases by U.S. companies. For example, Ford’s use of CATL-licensed technology for manufacturing electric vehicle batteries in Michigan and Tesla’s sourcing of batteries from BYD will not be impacted.

Media reports also highlighted that on December 22, 2023, the White House issued a statement announcing that U.S. President Biden had signed the 2024 National Defense Authorization Act. The legislation covers an expenditure of $886 billion, an increase of $28 billion from the previous year. The funds are primarily allocated for the Department of Defense programs and military construction, the Department of Energy’s national security programs, the State Department, and intelligence programs.

Source: WeChat Official Account—鑫椤锂电

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