US Implements Ban On Pentagon Battery Procurements From Chinese Makers, Including Warren Buffett-Backed BYD

The U.S. Defense Department faces an upcoming ban on batteries procured from China’s largest manufacturers as lawmakers aim to separate the Pentagon’s supply chain from its geopolitical adversary.

What Happened: The ban is part of the recently passed National Defense Authorization Act (NDAA). It will prevent purchases from Contemporary Amperex Technology Co. Ltd., BYD Co. (OTC:BYDDF) (OTC:BYDDY), and four other Chinese firms, beginning in October 2027, Bloomberg reported on Thursday.

The prohibition does not extend to commercial purchases. For instance, Ford Motor Co. (NYSE:F) can continue licensing technology from CATL for its electric vehicle batteries in Michigan.

The Department of Defense did not immediately respond to Benzinga’s request for comment.

Increased scrutiny on CATL’s dealings with Ford emerged last year due to concerns over the influence of Chinese companies on the electric vehicle sector.

Other manufacturers affected by the ban include Envision Energy Ltd., EVE Energy Co., Gotion High Tech Co., and Hithium Energy Storage Technology Co. Notably, only three of the top 10 global battery suppliers are non-Chinese entities.

Pentagon officials are yet to offer a clear definition of the new rule’s scope. The NDAA has previously introduced provisions to separate the Defense Department’s supply chain from China, with restrictions on Chinese semiconductors.

While the ban strictly applies to defense procurement, industries and lawmakers often use such rules as guidelines to determine trustworthy materials, products, and companies for their business operations.

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Mario Duran Via Wikimedia Commons