Bloomberg recently reported that the U.S. Congress decided to block the U.S. Department of Defense from purchasing batteries made by six Chinese companies, which is part of the "Defense Authorization Bill for Fiscal Year 2024".
The move marks that the US Congress is working to "decouple" the Pentagon's ** chain from China.
Under the bill, the U.S. Department of Defense would not be able to buy batteries from CATL, BYD and four other Chinese companies from October 2027.
This new rule implies that the US Congress is working to "decouple" the Pentagon's ** chain from China.
Bloomberg recently reported that in an effort to "decouple" from China, the U.S. Congress passed a new rule preventing the U.S. Department of Defense from buying batteries from six Chinese companies.
It has been reported that the new regulations will come into effect in October next year.
It should be noted that this initiative is not a commercial acquisition of a U.S. business. For example, Ford has applied to CATL for a new technology license for electric vehicle battery manufacturing in Michigan; Some of Tesla's batteries were also bought from BYD, so there will be no problems for the time being.
Why is the U.S. Congress blocking the Department of Defense from purchasing**? This reflects the U.S. defense and core technology considerations. With the vigorous development of new energy vehicles in the world, power battery is its core technology, which is related to the development direction of the whole country, and is also an indispensable important technology in the field of national defense and aerospace.
The U.S. Congress's ban on the use of batteries has recently expanded from military to civilian use, and from the U.S. mainland to outside the U.S. They not only prevented the U.S. team from purchasing military batteries from China, but also imported Chinese batteries from the civilian industry of the United States and its allies.
Arguably, this ban has caused many companies in the United States and its allies to complain.
It is precisely because of this ban that Tesla realized that Tesla, the world's largest battery manufacturer, actually uses Chinese batteries!
With the growth of sales, the increase in production capacity is also inevitable, especially after Tesla has released a series of new electric vehicles, there is a great demand for batteries and demand, both of which are indispensable.
In this harsh environment, China's battery is clearly the best choice.
You must know that in terms of environmental protection and sustainable development, the country has always been at the forefront of the world, and it is also very concerned about the development of new energy vehicles, so it has also achieved good results in the field of power batteries.
Tesla has made a controversial deal with China's batteries, but that's not so good for the United States.
China is the world's largest battery manufacturer, and its low-cost, high-quality goods have penetrated into every corner of the world.
There is no doubt that this war will change the whole world of electric ***
For South Korea, the ban is even worse. In South Korea, the company relies heavily on Chinese batteries due to a lack of ownership of batteries. Such a ban would cause serious damage to South Korea's economy and put South Korea in a very awkward position in the EV industry as a whole.
Whether it is an American company or a South Korean company, the ternary lithium-ion batteries produced are all made of raw materials from China, and the Americans may introduce China's battery technology into China to replace battery technology, but they have not thought that these technologies may not be the most cutting-edge technologies in the world.
China has established important economic and trade relations with more than 140 countries and regions, and has carried out a large number of "world-class minerals" construction abroad.
From the standpoint of the United States, this ban will have a big impact on the electric vehicle industry.
Tesla's battery raw materials come from China, which is a real surprise. Little was known about this issue before it was banned, but now it is being made public.
The U.S. Congress enacted a ban not for civilian companies like Tesla, but for military use.
It also reflects the complex relationship between China and the United States. Today's international situation is not just a polar confrontation, but also a huge network of relationships covering every corner of the earth. A "hard solution" between China and the United States is clearly not a good idea.
Until then, almost no one knew how dependent the U.S. team was on Chinese-produced batteries.
There is no doubt that the United States has adopted legal means to prevent the purchase of batteries from China to ensure the stability of the military industry chain, so that there will be no energy shortage at this juncture.
China's manufacturing industry has significant advantages in cost and scale, which is why the United States will buy Chinese batteries.
What is even more surprising is that a large number of Chinese-made parts are lurking in the chain of the United States.
In such a situation, the US military blockade has become more urgent, and it is necessary to guarantee its military strength in the shortest possible time.
Ford has already secured a patent from CATL for building all-electric vehicles in Michigan. Tesla also uses some of BYD's batteries.
In view of the implementation of this restrictive measure in the procurement of equipment in our industry, all industrial entities and the U.S. Congress will attach great importance to it and use it as the basis for judging and selecting reliable materials, products and suppliers.
The focus of the U.S. defense department is on its independence in core technologies, as well as its focus on ***.
However, in today's world economic integration, battery production is only one link in many international chains.
If China's battery manufacturers are sanctioned, it will trigger a series of conflicts, causing a series of damage, which will affect the economy of the whole world. On this issue, how to balance economic interests is a constant problem.
Chinese battery producers are also trying to diversify their international business and reduce their over-reliance on a single market to meet this challenge.
Since the publication of the U.S. Defense Authorization Act for Fiscal Year 2024, we have expressed great indignation over a number of negative China clauses, and have taken a harsh stance on the issue of prohibitions.
However, although the relevant parties have confirmed that this prohibition does not affect the first transaction between private enterprises, foreign reports pointed out that the US congressman, relevant companies, etc., should attach great importance to this as a guide for business activities.
In the face of the localization boom of new energy vehicles in Europe and the United States, as well as the increasing number of obstacles related to it, we must also pay attention to the far-reaching impact and impact of the bill.
The U.S. Congress has announced that it will block the Department of Defense from buying batteries from six Chinese companies, which means that the U.S. Department of Defense must use batteries made by other companies, although the price and quality are not as good as those made in China, but the U.S. law has been enacted.
It is clear that doing so in the United States is not good for the healthy development of the company.
Given that the U.S. economy is already in a deep crisis, and that any further austerity measures would inevitably have a major impact on its own economy, this prohibition is not a wise move, and it is hoped that the U.S. will recognize this and correct it.
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