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This policy prevents the US Department of War from procuring batteries from six named Chinese battery producers including CATL and BYD. This is extended by the FY2026 NDAA which from January 2028 bars new defence programmes from purchasing cells which were produced by or components from foreign entities of concern.",[222],{"type":52,"attrs":223},{"color":54},{"type":44,"attrs":225,"content":226},{"textAlign":41},[227],{"text":228,"type":49,"marks":229},"Although these rules do not force procurement of purely domestically produced cells, it strengthens the business case for defence-focused cell producers in the US and allied countries.",[230],{"type":52,"attrs":231},{"color":54},{"type":44,"attrs":233,"content":234},{"textAlign":41},[235,240,249],{"text":236,"type":49,"marks":237},"The ",[238],{"type":52,"attrs":239},{"color":54},{"text":241,"type":49,"marks":242},"European Union",[243,247],{"type":59,"attrs":244},{"href":245,"uuid":246,"anchor":41,"target":63,"linktype":64},"/article/europe-policy-and-defence-key-quotes-from-giga-europe-2026","c7988c65-254d-49b5-b9b1-bab4bf5071b7",{"type":52,"attrs":248},{"color":54},{"text":250,"type":49,"marks":251}," doesn’t explicitly exclude Chinese producers from its defence procurements. However, access to funding from its European Defence Industry Programme and Security Action for Europe loans require that at least 65% of the component costs must originate within the EU, EEA-FTA, or Ukraine. This rule applies to the end product rather than cell production, specifically.",[252],{"type":52,"attrs":253},{"color":54},{"type":207,"attrs":255,"content":256},{"level":209,"textAlign":41},[257],{"text":258,"type":49,"marks":259},"Where is defence-focused cell production located?",[260],{"type":52,"attrs":261},{"color":54},{"type":44,"attrs":263,"content":264},{"textAlign":41},[265],{"text":266,"type":49,"marks":267},"Benchmark is tracking ten independent facilities across the US targeting defence applications, with 0.66GWh of currently active capacity, rising to 5.5GWh by 2030. CAMINUS, ALE, Badland Batteries, EnerSys, and Forge Nano are a selection of homegrown cell producers expanding that presence. US-headquartered SES AI also revealed the start of production at an expanded site in South Korea in October. Otherwise, South Korea, Japan, and Taiwan have 3GWh of active defence-focused capacity from legacy cell producers such as GS Yuasa and Molicell growing their market presence.",[268],{"type":52,"attrs":269},{"color":54},{"type":44,"attrs":271,"content":272},{"textAlign":41},[273],{"text":274,"type":49,"marks":275},"Across the EU, EFTA, and UK region, the revived Customcells alongside groups like Porsche-controlled V4Smart, FAAM, and Volklec give the region 2GWh of active capacity, set to double by 2030.",[276],{"type":52,"attrs":277},{"color":54},{"type":44,"attrs":279,"content":280},{"textAlign":41},[281],{"text":282,"type":49,"marks":283},"In Russia and Ukraine, drone warfare has increasingly defined operations, and investment into a cell factory run by INESIS near Moscow highlights this, with small scale production already underway elsewhere operated by Liotech. However Russia and Ukraine still largely rely on imports of cells from China.",[284],{"type":52,"attrs":285},{"color":54},{"type":44,"attrs":287,"content":288},{"textAlign":41},[289],{"text":290,"type":49,"marks":291},"In the Middle East no large-scale operational capacity exists, though there are facilities in the pipeline. Pakistan recently outlined plans for a 1GWh plant to be operated by state-owned Margalla Heavy Industries. Iranian production remains \u003C20MWh, controlled by MODAFL at a facility rumoured to have been damaged during the ongoing conflict.",[292],{"type":52,"attrs":293},{"color":54},"As supply chains become an increasingly geopolitical topic, there has been a rise in investments into defence-oriented battery cell production facilities especially in the US.",true,[297],{"slug":298,"name":299,"content":300},"evan-hartley","Evan Hartley",{"job_title":301,"image":302,"bio":304,"linkedin":305,"markets_covered":306},"Research Manager",{"filename":303},"https://a.storyblok.com/f/287943243085208/800x800/670548875a/evan-h.jpeg","Evan is a Research Manager at Benchmark Mineral Intelligence, focusing on supply, demand, and cost analysis for global battery cell manufacturing, with previous experiences within the cathode and precusor cathode markets. 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