The U.S. Department of Defense is banned from purchasing batteries from six Chinese companies
21.01.2024
The U.S. Congress banned the Pentagon from purchasing batteries produced by six Chinese companies, including CATL and BYD. Relevant reports pointed out that the U.S. Congress is trying to further promote the “decoupling” of the Department of Defense supply chain from China.
(Deutsche Welle Chinese website) According to Bloomberg, the U.S. Congress has banned the Department of Defense from purchasing batteries produced by China’s largest manufacturer, in an attempt to further “decouple” the Pentagon’s supply chain from its geopolitical rivals.
As passed last month, theNational Defense Authorization Act of 2024(NDAA 2024), this provision will prohibit the Department of Defense from purchasing batteries from CATL, BYD, and four other Chinese companies starting in October 2027.
Bloomberg reported in a report on the 19th that this measure does not affect the commercial procurement of American companies. For example, Ford uses technology licensed by CATL to produce electric vehicle batteries in Michigan;TeslaSome of its batteries also come from BYD. In the fourth quarter of last year, BYD surpassed Tesla to become the world’s top-selling electric vehicle manufacturer.
The other four Chinese battery manufacturers whose batteries will be banned are Envision Energy, Yiwei Lithium Energy, Guoxuan Hi-Tech and Haichen Energy Storage. This ban complements the National Defense Authorization Act’s previous provisions to decouple the U.S. Department of Defense’s supply chain from China, including restricting the use of Chinese chips, but it still requires the Department of Defense to more clearly define the scope of the new regulations.
The report concluded by emphasizing that while the Department of Defense’s ban is strictly limited to defense procurement, industries and lawmakers often adhere to these regulations as a basis for which materials, products and companies should be trusted in their own business processes. The Pentagon did not immediately respond to Bloomberg’s request for comment.
Washington is working to reduce its nascent electric vehicle industry’s dependence on China. The U.S. Treasury Department announced last month that starting in 2024, electric vehicles produced in the United States that contain battery components manufactured or assembled in countries such as China will no longer be eligible for U.S. “Inflation Reduction Act“Provides tax credits of up to $7,500 per vehicle.
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2024-01-21 15:02:36
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