The Dawn of a Global Defense Revolution
A global defense revolution is taking shape, propelled by swarms of autonomous, unmanned, AI-driven drone systems. Recently, President Donald Trump signed the "Unleashing American Drone Dominance" executive order, signaling a major shift in how the U.S. approaches drone technology. Defense Secretary Pete Hegseth, on July 10, began efforts to operationalize this ambition, aiming to enhance domestic drone manufacturing and tech development.
The Battery Dilemma
However, this revolutionary transformation faces a critical vulnerability. Almost every autonomous system currently deployed relies on batteries sourced from supply chains heavily controlled by China. The implications are stark: if the U.S. can’t independently source and manufacture these batteries, its defense superiority is jeopardized.
Lessons from Ukraine
The ongoing conflict in Ukraine exemplifies this new frontier in warfare. Ukrainian forces have utilized small, cost-effective drones to take down Russian bombers worth millions. Ukraine is emerging as a testing ground for Western drone technologies, yet most of these innovations depend on batteries originating from Chinese supply chains.
Pentagon’s Strategic Restructuring
The Pentagon is aware of this strategic shortcoming. The Army is undergoing its largest restructuring since the Cold War, equipping active divisions with thousands—potentially millions—of drones. The Defense Department’s Replicator Initiative seeks to deploy thousands of autonomous systems by the end of this year. Projects like the Defense Innovation Unit’s Project G.I. are fast-tracking next-generation drone technology.
A Shift in Warfare Dynamics
This shift presents a new reality in military strategy. For over a century, access to oil and fuel supplies determined the outcomes of wars. Today, drones and autonomous systems have changed the game; the new competitive advantage comes from access to batteries and AI technologies. Unfortunately, the U.S. finds itself trailing behind in this essential area.
The Chinese Battery Monopoly
At the heart of the battery issue is China’s near-total monopoly on battery-related materials. The existing lithium-ion technology, essential for drones and various defense systems, needs cobalt, nickel, and graphite—resources that flow through China’s controlled supply chains. Beijing dominates the global processing of battery-grade materials, holding over 95% of the graphite market. This monopoly didn’t arise from open market competition but rather a well-planned industrial strategy strengthened over decades.
Despite attempts in the U.S. and Europe to establish battery manufacturing, China’s control over raw materials and production processes continues to loom large. Congress recognized this vulnerability in the 2024 National Defense Authorization Act, which prohibits sourcing batteries with Chinese materials by October 2027. But as the landscape evolves, the U.S. has not invested robustly enough to mitigate this risk quickly.
The Path to Next-Generation Battery Solutions
Recognizing the enormous challenge posed by lithium-ion technology, a more formidable solution exists in the form of next-generation batteries. Rather than attempting to replicate China’s dominance in lithium-ion batteries, the U.S. has the potential to leapfrog this model entirely.
One promising alternative is lithium-sulfur batteries. Unlike lithium-ion counterparts, these batteries do not depend on Chinese-controlled minerals. Instead, they can be manufactured from materials readily available in the U.S., which could transform the landscape of battery supply chains. Lithium-sulfur batteries boast better energy density and lighter weight—crucial traits for drone applications where every gram counts.
U.S. Innovations in Battery Technology
Several American companies are leading the charge in commercializing lithium-sulfur technology. For instance, Lyten has begun producing drone batteries in the U.S. with energy density that surpasses traditional lithium-ion options. An increasing number of customers across aerospace, defense, and industrial sectors indicate a strong demand for alternatives among end-users.
Urgency in Strategic Investments
The call to action is clear: immediate investments in battery technology are essential. The U.S. possesses the opportunity to cultivate a local, robust battery manufacturing ecosystem using scalable supply chains and established infrastructure. The Defense Production Act (DPA) can play a pivotal role in fast-tracking this production. Much like the government’s empowered response to medical supplies during the pandemic, a similar urgency is required to navigate the current battery crisis.
The time has come for America to lead with bold and innovative strategies in battery technology—beginning with drones. This shift not only has national security implications but also positions the U.S. as a formidable global leader in the next chapter of military and defense technology.
