A world protection revolution is underway primarily based on swarms of autonomous, unmanned, AI- and battery-powered drone programs. Final month President Donald Trump signed the “Unleashing American Drone Dominance” government order, and on July 10, Protection Secretary Pete Hegseth started to operationalize efforts to bolster home drone expertise and manufacturing.
Sadly for the U.S. and the West, this complete revolution rests on a single level of failure: Practically each autonomous system being deployed at present is powered by batteries depending on Chinese language-controlled provide chains. If America can’t supply and manufacture the batteries that energy its drones and autonomous programs, its protection superiority is in danger.
The Ukraine battle offers a real-time demonstration of warfare’s new actuality. Ukrainian forces have used small, cheap drones to destroy Russian strategic bombers price tens of tens of millions of {dollars}. Ukraine has turn into an innovation lab for growing and producing Western drones, but almost all of them are powered by batteries depending on China.
The Pentagon has gotten the memo. The Military is present process its largest restructuring for the reason that Chilly Conflict, equipping every of its active-duty divisions with many 1000’s—and doubtlessly tens of millions, finally—of drones. The Protection Division’s Replicator Initiative goals to quickly discipline 1000’s of autonomous programs earlier than the top of this yr. Applications just like the Protection Innovation Unit’s Undertaking G.I. are fast-tracking the subsequent era of drone expertise.
This transformation brings a stark actuality. For the final 100-plus years, entry to grease to energy tanks, jets, ships, and provide chain strains has decided the end result of wars. However in a world of unmanned autonomous programs, entry to batteries and AI programs is the brand new aggressive benefit. Sadly, with batteries, we’re behind.
China’s battery monopoly
The legacy lithium-ion battery expertise that dominates the marketplace for drones and different protection purposes requires cobalt, nickel, manganese, and graphite—supplies that circulate by means of provide chains managed by Beijing, from mining to metals processing to battery manufacturing. Within the case of graphite, a cloth present in almost each battery at present, China controls processing of better than 95% of the worldwide battery-grade market. This isn’t the results of free market competitors. That is the results of many years of Chinese language industrial coverage and subsidies to construct its international management in batteries.
Regardless of current investments within the U.S. and EU to construct battery manufacturing, China’s consolidation of the market continues to develop yearly. Why? As a result of China has a monopoly on the provision chain and expertise feeding these battery crops. Beijing has restricted exports of vital battery supplies, flooded international markets to undercut opponents, and in some circumstances stopped supplying batteries to explicit U.S. drone corporations. In different phrases, China is wielding its monopoly management of the market.
Congress acknowledged this vulnerability when it handed the 2024 Nationwide Protection Authorization Act, which prohibits the Protection Division from procuring batteries containing Chinese language-sourced supplies starting in October 2027. What was a possible vulnerability is now the present actuality in 2025, and the U.S. collectively has not been investing quick sufficient or strategically sufficient to solidify a home battery provide chain.
The answer is U.S. next-generation batteries
Let’s face it. After almost 30 years of commercial coverage, China has received the battle for lithium-ion dominance. Replicating its technique simply performs into the arms of the monopoly chief at the price of massively wasted assets. The higher path is to leapfrog the lithium-ion expertise altogether by accelerating the phase-in of next-generation battery applied sciences that rely upon native provide chains.
Lithium-sulfur batteries signify probably the most promising—and instantly accessible—alternate options. In contrast to typical lithium-ion expertise, lithium-sulfur batteries don’t require Chinese language-controlled minerals and processes, reminiscent of nickel, cobalt, manganese, and graphite. As an alternative, lithium-sulfur is constructed from supplies available within the U.S. as byproducts of the prevailing, massively scaled oil and gasoline business.
Moreover, lithium-sulfur is a leap ahead in power density, which implies a 30-50% lighter weight battery. In drone purposes, each gram issues. A U.S.-sourced, U.S.-manufactured lithium-sulfur battery that flies additional and carries extra payload, paired with American innovation, is how America can lead the drone revolution.
A number of U.S. corporations have been racing to commercialize lithium-sulfur expertise. Lyten is one among them. We started business drone battery manufacturing within the second quarter, sourced and manufactured within the U.S., with power density superior to lithium-ion batteries. The pipeline of prospects is rising every day throughout aerospace, protection, provide chain, and industrial sectors—clear proof of pent-up demand for alternate options to at present’s lithium-ion expertise.
It’s time to take a position through the Protection Manufacturing Act
Now’s the time to maneuver with urgency. The U.S. has a superior various to lithium-ion expertise accessible at present, using a massively scalable, native provide chain, and the manufacturing infrastructure in place to quickly scale with the best strategic investments. The Protection Manufacturing Act grants the federal authorities authority to speed up home manufacturing of vital applied sciences for nationwide safety functions. President Trump beforehand used the DPA to spice up home manufacturing of medical provides in the course of the pandemic. The present battery disaster calls for comparable urgency.
Beginning with drones, it’s time for America to make an announcement globally and execute a U.S.-led battery revolution.
The opinions expressed in Fortune.com commentary items are solely the views of their authors and don’t essentially replicate the opinions and beliefs of Fortune.
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