Technological independence is not a luxury, it is a prerequisite for any nation that seeks to remain free, secure, and in control of its critical infrastructure. Today, the U.S. faces a strategic challenge to its technological sovereignty, not from a traditional enemy on the battlefield, but through its dependence on Chinese-made drones and the supply chains that support them.
At first glance, drones can look like everyday tools with civilian uses, but in the defense arena they have become critical assets for surveillance, targeting, logistics, and battlefield awareness. Today, China dominates key segments of the global drone ecosystem, with an influence that runs deep into the supply chains behind them, especially batteries, motors, and control components. For the U.S., relying on systems built on foreign, potentially adversarial technology is a strategic vulnerability that can directly affect national security and military readiness.
China’s Control of Critical Battery and Drone Supply Chains
China’s control over the supply chain for lithium-ion batteries is extensive, shaping global access to many of the materials and components used in modern energy and drone systems. Indeed, China controls 70% of finished battery production globally, holding commanding shares in many battery-critical materials, dominating the processing of graphite, the production of anode and cathode materials, and the manufacturing of battery packs. Consequently, if China restricts exports, whether for economic leverage or for national-security reasons, entire markets grind to a halt.
In November 2025, China imposed export controls on several categories of lithium-ion battery materials, including cell packs, cathode precursors, expanded anode materials, and related processing technologies. These components are widely used in EVs, grid-storage systems, and unmanned aerial systems (UAS). As a result, countries that depend on these materials may experience supply disruptions when such controls are put in place.
Threats to U.S. Military Readiness
For the U.S., this presents both economic and security considerations. Indeed, China’s dominance over the lithium-ion battery supply chain could impact American military readiness. Many U.S. defense platforms, including surveillance drones and robotic vehicles, rely on advanced batteries, meaning supply disruptions could affect their operational availability.
Similarly, China has entrenched power in components beyond batteries. As such, Chinese firms are supplying the majority of critical pieces for drones including batteries, motors, electronic speed controllers, and flight controllers are heavily concentrated in Chinese-controlled firms. Therefore, even if a drone is assembled in the U.S., its power sources and control systems may still be manufactured halfway around the world under the control of a geopolitical rival.
The Dominance of Chinese Drone Manufacturers
50% to 80% of the key components used in U.S. military drones come from China. These systems, deployed for defense, reconnaissance, and tactical operations, collect sensitive data such as images, video, and telemetry. As the data is then transmitted to servers outside the U.S., organizations using these drones must consider how it is stored, transmitted, and accessed.
U.S. policies and investigations into Chinese drones reflect broader concerns about reliance on foreign components in critical systems. Drones are increasingly integrated into both civilian and defense applications, where consistent access to reliable hardware and software is essential. Hence, dependence on components produced abroad can affect procurement, maintenance, and operational planning for these systems.
Setting Goals for Drone Independence
To reduce dependence on foreign drones, U.S. policymakers in 2025 issued an executive order called Unleashing American Drone Dominance, which directs all federal agencies to prioritize U.S.-manufactured drones whenever legally possible. The order also mandates actions by the Secretary of Commerce to secure the drone supply chain through investigations and rulemaking.
The policy aims to expand domestic drone production, scale up manufacturing capacity, and support innovation in UAS. As part of the effort, federal funding and other tools are expected to support U.S.-based drone companies, and public-private partnerships may be strengthened to develop a more resilient domestic drone ecosystem. Additionally, the order emphasizes workforce development, calling for support for high-skilled jobs in the drone sector and for the integration of drone technologies into education and training programs.
Rebuilding the Battery and Materials Supply Chain
To reduce supply-chain risk, the U.S. is increasing domestic capacity for mineral extraction, processing, and advanced manufacturing of battery materials. The federal government has streamlined permitting, provided incentives for critical-mineral production, and established special economic zones around known mineral deposits to support extraction and downstream manufacturing. Moreover, federal funding has been directed to graphite processing, cathode and anode production, and battery-cell assembly.
Currently, China controls over 95% of the global supply of battery-grade graphite, a critical material for lithium-ion batteries. The U.S. Department of Commerce has imposed a 93.5% antidumping tariff on Chinese graphite imports, which brings the total effective rate, including countervailing and other duties, to 160%.
Furthermore, the U.S. is engaging with countries to diversify supply chains while investing in research and development of innovative battery chemistries, more efficient processing methods, and advanced production techniques. These combined measures aim to strengthen U.S. domestic capabilities and reduce reliance on foreign sources for critical battery materials.
Securing Technological Independence with Addionics
Strengthening U.S. technological independence requires long-term investment in advanced materials, resilient supply chains, and manufacturing capabilities that can scale. As electrification advances across UAS, the performance and reliability of drone batteries directly affect operational continuity, fleet readiness, and overall national resilience. Reducing dependency on Chinese suppliers by sourcing advanced battery components domestically supports this broader goal by reducing reliance on foreign suppliers and enabling domestic production at competitive cost and performance levels.
Addionics 3D Current Collectors improve battery performance by enabling 12% higher energy density, greater active-material loading, and faster charging thanks to lower internal resistance. Their porous structure also extends lifetime by 60% and supports scalable, cost-effective manufacturing, reducing production costs by 10%. Addionics is already partnering with American manufacturers to address current collector supply challenges, ensuring a reliable domestic source while improving battery performance.
The technology is a drop-in solution that is compatible with all battery chemistries, and can be added to existing production lines, allowing manufacturers to integrate Addionics 3D Current Collectors without costly changes. This provides a practical, capital-efficient path into advanced battery materials and lets producers upgrade performance while maintaining established workflows.
As supply chains localize and domestic manufacturing capacity scales, higher-performing components will be essential. Scalable innovations like Addionics’ 3D Current Collectors give manufacturers a competitive edge, reduce long-term costs, and support the production of batteries that meet rising expectations for efficiency, durability, and sustainability.
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