Drones are the largest driver of defence industry battery demand

The greater deployment of drones is having a profound impact on the modern battlefield and has put the geopolitics of the battery supply chain into a new spotlight.

In 2025, drones accounted for 39.2% of defence demand for batteries, according to Benchmark. This is up from just 20% in 2020. Soldier power and bases are the two next largest drivers of defence demand for batteries.

"Drones have clearly risen to be the most influential aspect of modern military battery demand,” said Will Roberts, Benchmark’s automotive research lead. “Major militaries are still just getting started in their strategic investments relating to them which is about to set off a flurry of activity to domesticate supply chains, something which is getting significant attention from major battery manufacturers and new entrants alike."

Benchmark has published a Special Issue outlining the evolving role of batteries in defence and the geopolitical forces shaping this industry.

What is the geopolitical picture for drones and defence?

China has the world’s largest and most vertically integrated drone industry, combining dominant manufacturing capacity with the deepest component supply chain, including that of batteries. As a result, modern drone warfare, including in Ukraine, remains deeply reliant on Chinese-origin inputs across upstream critical mineral, battery and magnet production.

These chokepoints create a structural vulnerability, meaning that any supply disruption could have immediate battlefield consequences. At the same time, the US and Europe face a significant challenge in reducing reliance on Chinese supply chains without undermining their ability to scale production.

Ukraine’s rapid adoption of drone technology has led to Europe currently being the largest driver of battery demand for defence applications. However, over the next decade Benchmark forecasts that China will grow to account for over half of defence battery demand by 2035 as it accelerates the deployment of drones in its military activities.

“Batteries were once seen as an energy transition story,” said Brayn Bille, Benchmark’s lead policy and geopolitical analyst. “Today, they are just as much a defence and security story. From drones to soldier power systems, batteries now sit at the heart of modern military capability — making them a critical dual-use technology and placing battery supply chains squarely in the geopolitical crossfire between the US and China."

Coverage across each of the defence applications mentioned in this article is now available via Benchmark’s Nonroad Mobile Machinery (NRMM) datafile, with forecasted GWh and chemistry share available to 2050. Request a sample here, or fill in the form below for more information.