To Stop Chinese Dual-Use Battery Dominance, the United States and South Korea Need to Team Up

Why It Matters

A China‑dominated battery ecosystem would give Beijing leverage over key defense platforms and erode the strategic advantage of U.S. and allied forces, making coordinated action between the United States and South Korea a national‑security imperative.

Key Takeaways

• China’s batteries power drones, submarines, and future directed‑energy weapons.
• BYD captured ~30% of South Korean EV registrations in Q1 2026.
• South Korean battery makers hold only 12.6% global EV‑battery share 2026.
• U.S. and Korea should align trade, mining, and R&D to avoid monopoly.
• Pentagon’s BEACONS lab tests solid‑state and zinc‑ion chemistries for defense.

Pulse Analysis

The strategic importance of batteries extends far beyond electric cars. Their high energy density enables autonomous weapons, long‑range drones, and next‑generation naval platforms, making them a classic dual‑use technology. China’s aggressive investment in lithium‑ion production and its ability to undercut prices have allowed its firms to infiltrate markets traditionally dominated by South Korean giants such as LG Energy Solution and Samsung SDI. This shift not only reshapes commercial competition but also creates a vulnerability for the U.S. Department of Defense, which relies on thousands of battery types—many of which trace components back to Chinese supply chains.

South Korea, the world’s second‑largest battery producer, is feeling the pressure. BYD’s entry into the Korean market in 2025 led to a rapid surge in Chinese‑made EVs, accounting for roughly one‑third of new registrations in early 2026. Meanwhile, domestic battery makers saw their global EV‑battery market share dip to 12.6%, lagging behind Chinese rivals CATL and BYD, which together command over half of the market. The erosion of South Korea’s foothold threatens the broader “ex‑China” ecosystem, as a weakened Korean sector would reduce alternative sources of critical minerals and processing capacity.

Policy experts argue that the United States and South Korea must synchronize trade, research, and investment strategies to preserve supply‑chain resilience. Leveraging existing tools such as the Minerals Security Partnership and the Export‑Import Bank can finance upstream mining projects in Australia, Argentina, and Indonesia, while joint R&D initiatives—exemplified by the Pentagon‑backed BEACONS facility—can accelerate solid‑state and zinc‑ion battery breakthroughs. By avoiding protective tariffs on allied producers and fostering transparent, defense‑grade standards, the alliance can build a diversified battery supply chain that safeguards both commercial competitiveness and national security.