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The Impact of China’s Rapid EV Battery Industry Development on the U.S. Domestic Supply Chain: Challenges and Strategic Responses
- 1 Huaqiao University, Quanzhou, China
* Author to whom correspondence should be addressed.
Abstract
The rapid development of China's electric vehicle battery industry has significantly reshaped global battery supply chains, creating both opportunities and challenges for the U.S. domestic supply chain. This essay examines the implications of China's advancements in EV battery production and trade on the U.S. domestic supply chain, focusing on multiple aspects such as raw material sourcing, production costs, research and development, international collaborations, and policy-making expenditures. Through a comprehensive literature review, this essay identifies gaps in existing research. There are limited explorations of possible factors contributing current situation faced by the U.S., potential alternatives to the sustainable approach for battery raw material supply and applicable policies for supporting the U.S. domestic battery supply chain. To bridge the existing literature gap, the analysis delves into key challenges faced by the U.S., including rising production costs and limited technological advancements, and explores potential international partnerships to enhance supply chain resilience. The conclusion synthesizes the findings and emphasizes the importance of essential measures to address these challenges. The suggestions section proposes systematic policies for the U.S. government, emphasizing investment in domestic production, building international partnerships, and developing a diversified and sustainable supply chain to mitigate risks associated with China's growing influence. This essay aims to contribute to the discourse on strategic responses to China's dominance in the EV battery industry and provide some feasible pathways for U.S. to reinforce its core competence in the global battery market.
Keywords
Electric vehicle battery, supply chain, U.S EV
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Cite this article
Xu,X. (2025). The Impact of China’s Rapid EV Battery Industry Development on the U.S. Domestic Supply Chain: Challenges and Strategic Responses. Advances in Economics, Management and Political Sciences,163,48-57.
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