The US Department of Defense has designated Contemporary Amperex Technology Co., Limited (CATL) as a “Chinese Military Company,” prompting concerns about the future of electric vehicle batteries in America. The move, intended to protect national security, may instead disrupt key supply chains and drive up costs for consumers.
The blacklisting of CATL, the world’s largest EV battery manufacturer, has sent shockwaves through the industry. With many US automakers relying on CATL’s technology, including General Motors’ Ultium platform and Tesla’s expansion plans, the move could lead to shortages and higher prices. This could hinder America’s ambitions to reach 50% of new car sales as electric vehicles by 2030.
However, critics argue that the blacklisting is an unneeded punishment for consumers and manufacturers alike. With CATL’s dominance rooted in government support, economies of scale, and innovation, it’s unclear how a blanket policy can address legitimate security concerns. Moreover, alternatives like LG Energy Solution or Panasonic may struggle to fill the void, leading to delays and higher costs.
The move also raises questions about the US approach to trade with China. In Europe, similar restrictions led to supply shortages and slower EV sales growth. The US must navigate a complex web of tariffs and trade tensions without compromising the quality and performance of electric vehicles for consumers. As the leadership conversation around trade with China becomes increasingly nuanced, it’s essential that policymakers prioritize cooperation over punishment.
Ultimately, this blacklisting serves as a cautionary tale about the importance of thoughtful leadership in times of trade tension. With risks needing to be evaluated on a case-by-case basis, the US must tread carefully to avoid disrupting key supply chains and driving up costs for consumers.
Source: https://www.forbes.com/sites/chriswestfall/2025/01/10/tariff-troubles-worlds-largest-ev-battery-maker-blacklisted-in-usa