National Security Starts With Battery Security

Batteries now sit at the center of the systems that define national power.

Recent federal action points in the right direction. The Department of Energy has committed up to $500 million to expand domestic battery materials processing and manufacturing, linking that investment directly to defense and energy security. At the same time, Congress is moving to limit the Department of Defense’s reliance on foreign battery suppliers through the FY2026 National Defense Authorization Act.

The message is becoming clearer. Batteries are moving into the category of strategic infrastructure.

Without a secure domestic supply chain, the United States cannot fully control the systems that rely on stored energy. That includes defense platforms, the electric grid, and the computing infrastructure behind AI.

Modern defense systems are more distributed, more autonomous, and more electrified than at any point in history. That evolution has made batteries mission critical.

Battery demand is expanding well beyond electric vehicles. Growth in AI infrastructure and grid storage is reshaping the market and raising the stakes for supply security, with battery demand increasingly driven by data centers and energy storage, not just EVs.

Capacity now maps directly to capability.

The United States pioneered lithium-ion battery technology, but it did not industrialize or scale it.

That happened elsewhere. Japan moved early to commercialize the technology, while South Korea and China built the manufacturing base that now defines the global supply chain.

The result is structural dependence. The United States relies heavily on foreign cell makers across automotive, consumer, and industrial applications.

In commercial markets, that reliance has been manageable. In national security contexts, it carries more risk.

Modern defense systems, along with data and medical infrastructure, depend on batteries that must be secure, reliable, and trusted. Today, U.S. defense and AI systems remain heavily dependent on Chinese battery supply chains, and America’s defense infrastructure continues to rely on foreign-made batteries.

This is ultimately a question of control. Strengthening domestic capacity will require not just continued innovation, but the ability to industrialize and scale battery production at home.

Over the past year, policymakers have started to treat batteries as part of the national security framework.

The FY2026 NDAA restricts defense procurement from foreign entities of concern. Federal funding is increasingly directed toward domestic processing, recycling, and manufacturing. There is also renewed focus on critical minerals and supply chain resilience.

These are meaningful steps. They signal alignment between energy policy, industrial policy, and defense priorities.

Execution will determine whether that alignment translates into real capacity. Building a domestic supply chain takes time, coordination, and sustained investment.

The U.S. energy storage sector has outlined plans for up to $100 billion in battery manufacturing and deployment across the United States and allied markets. That level of investment could support hundreds of thousands of jobs and establish a fully domestic supply base for grid storage within the next decade.

What remains uncertain is whether policy will stay consistent enough to support it.

Large-scale manufacturing investments depend on long timelines and stable signals. Companies need confidence that incentives will persist, that permitting will move at a reasonable pace, and that demand will be there once facilities come online.

As defense systems become more autonomous and more distributed, the requirements placed on batteries become more demanding. Range, weight, and reliability all affect operational capability. Small improvements can translate into meaningful advantages in the field.

Advances in battery design are beginning to address those needs. Solid-state systems, for example, offer the potential for higher energy density and improved safety. That matters for applications where endurance and reliability are tightly linked.

The next phase of competition will hinge on both scale and technical capability.

Batteries should be treated as core infrastructure, with procurement strategies that reinforce domestic production. Investment in critical materials needs to connect directly to manufacturing capacity. Permitting and deployment timelines should be streamlined to reduce friction.

Just as important, policy needs to remain predictable. Long-term clarity is what allows private capital to move at scale.

Support for next-generation technologies should continue alongside efforts to expand manufacturing. Innovation and production need to advance together.

The next phase is more difficult. It requires building capacity, aligning stakeholders, and sustaining momentum over time.

Decisions made now will shape how the U.S. powers its economy and supports its defense systems in the years ahead.

Siyu Huang, Ph.D.  is the co-founder and CEO of Factorial Energy, a solid-state battery leader advancing U.S.-driven technology on a global stage.